A significant investor suggests the acquisition of Bitcoin as a means to protect against inflation, mirroring recent strategic decisions made by companies like Microsoft and other leading tech corporations.
A stakeholder at Meta, the organization that oversees Facebook, has suggested a significant change in the company’s financial approach. Ethan Peck, an associate at The National Center for Public Policy Research, advocated for Meta to allocate some of its $72 billion cash holdings towards Bitcoin investment. This recommendation follows recent suggestions made to tech giants like Microsoft and Amazon. This proposal arises amid growing institutional interest in Bitcoin.
Someone who owns a part of Meta (the company that runs Facebook) is suggesting they should invest some of their $72 billion cash into Bitcoin, following similar ideas for other large companies like Microsoft and Amazon. This idea comes as more big investors show interest in Bitcoin.
On January 10th, Bitcoin YouTuber Tim Kotzman announced a proposal he claims was submitted by Peck on behalf of the Meta family’s shares. According to Kotzman, the primary objective of this proposal is to counteract inflation that erodes the worth of Meta’s cash reserves. Peck suggested that Bitcoin, due to its robust performance, could act as a safeguard against inflation, and simultaneously enhance shareholder value.
Over the past few years, Bitcoin has displayed remarkable growth, as noted by Peck. In the year 2024 alone, its value skyrocketed by an impressive 124%. Moreover, over the last five years, it experienced a staggering increase of 1,265%. Compared to traditional investments like bonds, the returns from these Bitcoin gains are significantly higher.
Tech Giants Like Meta and Microsoft Show Growing Interest in Bitcoin
Peck pointed out that Meta, in a roundabout way, already holds investments linked to cryptocurrency. This is because one of its second biggest institutional investors, BlackRock, has invested in Bitcoin. BlackRock supports Bitcoin and advises firms to allocate around 2% of their liquid assets to it. The IBIT, the largest Bitcoin ETF available in the U.S., is managed by BlackRock.
Other significant companies, like Microsoft and MicroStrategy, are expressing interest in Bitcoin. Microsoft has hinted at the possibility of accepting it as payment down the line. Later in the year, Michael Saylor, the executive chairman of MicroStrategy, presented before Microsoft’s board to advocate for its use of Bitcoin. Known for his strong support of Bitcoin, Saylor believes that tech giants, including Microsoft, risk missing out on the next major technological trend if they don’t embrace it.
The suggestion could signify a shift in how major corporations manage their reserves. If Meta decides to incorporate Bitcoin, it would join the expanding list of firms viewing Bitcoin as a valuable asset for future investments. Given the continued popularity of cryptocurrency, it is likely that more companies will adopt similar strategies.
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2025-01-14 22:37