As a researcher, I find myself drawn once more to the tantalizing prospect of a corporate treasury brimming with cryptocurrency, this time specifically focusing on Meta Platforms Inc. The National Center for Public Policy Research (NCPPR) has set its sights on this company.
Ethan Peck, an employee at the National Center, put forward a proposal for Bitcoin Treasury Shares to Meta Corporation, which is owned by his family. This action represents one more effort aimed at introducing cryptocurrency into the decision-making arenas of major technology companies.
On January 10th, Tim Jotzman, who hosts a Bitcoin (BTC) podcast, made public a proposition through a social media update. Here’s the detail: [insert content]
A proposal regarding Bitcoin Treasury has been put forth by Meta by a shareholder named Ethan Peck, who works at The National Center for Public Policy Research and previously submitted similar proposals to Microsoft ($MSFT) and Amazon ($AMZN). Ethan mentioned that he made this submission on behalf of his family’s shares.
— Tim Kotzman (@TimKotzman) January 10, 2025
Will corporate treasuries turn into crypto strongholds?
Located in Washington, D.C., the NCPPR has been advocating for Bitcoin as a protective measure against inflation and financial instability. They have recently reached out to Microsoft Corporation and Amazon.com Incorporated, making similar arguments.
In a contrasting turn of events, while Microsoft in Redmond, Washington has rejected the proposal, Amazon, based in Seattle, is expected to discuss it during their shareholders’ gathering in April.
It appears that the NCPPR is adopting an approach similar to Michael Saylor’s. As the ex-CEO and present chairman of MicroStrategy, Saylor devised a Bitcoin-centric business model and has become a symbol of companies that have substantial cryptocurrency holdings in their reserves.
If the NCPPR’s plans come to fruition, companies such as Meta and Amazon might follow in the footsteps of MicroStrategy by investing a part of their resources into Bitcoin. The reason behind this move is that they view Bitcoin as an attractive alternative to conventional corporate bonds because it has a fixed supply.
By the year-end in 2024, Bitcoin ETFs experienced a staggering increase of 100%, which is four times greater than the S&P 500 index’s returns. Moreover, this growth outperformed the Roundhill Magnificent Seven ETF by approximately 35%. This ETF follows the performance of seven tech titans, including Meta, Microsoft, and Amazon among its ranks.
And then there’s MicroStrategy, which saw its stock balloon 2,191% over five years.
Remember Libra? No? Good.
In 2019, Facebook (then called Meta) endeavored to debut its own digital currency, Libra. This initiative sought to establish a worldwide stablecoin with its value tied to a combination of various national currencies and government bonds.
Initially designed to enable affordable, effortless money transfers across the globe, especially for those without bank accounts, Libra encountered substantial resistance from governments and financial overseers worldwide. They voiced worries about the impact on national currency control, privacy of user data, and possible exploitation for illegal purposes.
As a project analyst, I find myself reflecting on the transformation our project underwent in the year 2020, when we rebranded ourselves as Diem. This new identity marked a significant shift in our focus, narrowing it down to U.S. dollar-backed stablecoins. In an attempt to expand our partnership network, we reached out to industry giants such as Visa, Mastercard, and PayPal. However, despite their initial interest, they ultimately chose to withdraw their support.
By early 2022, Meta sold Diem to Silvergate Bank for around $200 million.
Even though the Libra/Diem project didn’t succeed, it clearly showcased Meta’s keen interest and aspirations in the digital currency sector.
As an analyst, I’m pondering whether Mark Zuckerberg, the CEO of Meta, and his team will seize the opportunity presented by the NCPPR and integrate Bitcoin into their future strategies. Time will tell.
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2025-01-12 08:32