meta-may-create-bitcoin-reserve-protect-against-inflation

Meta may create a Bitcoin reserve to protect against inflation

Market Analysis

January 13, 2025

The board of directors of Meta has been urged to consider a new strategy for storing liquid assets. On behalf of the tech giant's shareholders, employees of The National Center for Public Policy Research (NCPPR) submitted an initiative to create a Bitcoin reserve.

The key argument of the initiative's authors: the company's current cash reserves, valued at $72 billion, are vulnerable to depreciation due to inflation. According to their estimates, such a strategy could lead to a loss of up to 28% of the purchasing power of the capital.

The proposal is based on the characteristics of BTC as "digital gold." Due to its fixed supply, it is considered a stable tool for preserving capital. The authors also highlighted positive remarks about cryptocurrency from Mark Zuckerberg and Marc Andreessen, co-founder of a16z.

Precedents and results

According to OKG Research, by the end of 2024, only 0.01% of public companies owned crypto assets, but interest in digital assets is growing. For example, in December 2024, Microsoft shareholders considered a similar proposal, approving it by just 0.55%. A similar initiative was also directed at Amazon shareholders, reflecting NCPPR's efforts to promote cryptocurrencies among large corporations.

Hedging or caution?

The proposal to create a Bitcoin reserve requires careful analysis. On one hand, it is a way to protect against inflation and become a pioneer among large companies, but on the other hand, cryptocurrencies remain volatile assets, which could affect financial stability.