An interesting document has recently appeared that examines whether Meta should add bitcoin to its treasury reserves.

Let's look at the main arguments and their logic.

Meta currently has $256 billion in assets, of which $72 billion is cash and bonds. These instruments are losing value due to inflation and low yields, which no longer cover the price increase.

The authors of the initiative propose to replace some of these assets with bitcoin. The main argument is that BTC has a limited supply and has shown 1.265% growth over the past 5 years, overtaking traditional assets.

The case looks attractive, but let's look at the key aspects.

1. The fundamental argument:

Bitcoin is really resistant to inflation due to the fixed supply.

But it is worth considering that its price is highly volatile. If Meta replaces some of its reserves with bitcoin, it will increase the risks of short-term losses.

2. Recommendations from major players:

The document mentions that BlackRock, Meta's second largest shareholder, recommends holding 2% of the portfolio in bitcoin.

But this is a general recommendation, and its implementation in the context of Meta should take into account the scale of the company and the reaction of shareholders.

3. MicroStrategy example:

Yes, MicroStrategy has made money by adding BTC, but its strategy is suitable for companies with a narrower financial structure. Meta is a giant where solutions of this level should be much more thoughtful.

4. Innovative Meta Image:

The document mentions that Meta has always been an innovator. But innovation must be balanced with responsibility.

Bitcoin has not yet become a generally accepted corporate asset, and such a step carries reputational risks.

5. Risks and challenges:

The regulatory uncertainty surrounding cryptocurrencies, high volatility, and varying levels of acceptance among shareholders all make the proposal moot.

What can be taken out of the document?

This is an interesting argument in favor of bitcoin as a corporate asset. But for a company of Meta's scale, this is not so much a decision to introduce cryptocurrencies as a challenge in terms of communicating with shareholders, managing risks, and maintaining stability.

Meta can consider bitcoin as part of reserves, but only with an integrated approach and taking into account all possible consequences.

So far, this looks more like an experiment than a strategic decision.

However, Mark Zuckerberg, as an innovation leader, has been giving signals for a long time. His trump cards — Bitcoin and Max — speak for themselves + he has >50% of all votes.

So who knows? Maybe it will,