Meta Shareholders Reject Bitcoin Proposal 99.92%

Meta Platforms Inc. shareholders have overwhelmingly voted against a proposal to consider adding Bitcoin to the company's balance sheet. The proposal, submitted by Bitcoin advocate Ethan Peck on behalf of the National Center for Public Policy Research, aimed to convert a portion of Meta's $72 billion in excess cash and cash equivalents into Bitcoin. The measure argued that Bitcoin, with its fixed supply and strong past performance, could serve as a more reliable long-term store of value compared to bonds.

According to a May 28 filing with the U.S. Securities and Exchange Commission, an overwhelming 4.9 billion votes were cast in opposition to the proposal, while only 3.92 million votes, a mere 0.08% of the total, supported it. This decisive rejection indicates a strong lack of support for integrating Bitcoin into Meta's financial strategy. Meta CEO Mark Zuckerberg, who controls 61% of the company’s voting power, likely played a significant role in this outcome, as he could have voted down the idea.

Peck's proposal suggested that Meta should treat Bitcoin as a strategic reserve asset, similar to a corporate war chest designed to endure monetary policy uncertainty. He also pointed out that Meta’s second-largest shareholder, BlackRock, advised that a 2% Bitcoin allocation is reasonable. However, the vast majority of shareholders did not share this perspective, preferring traditional financial instruments and a more conservative investment approach.

Meta's decision to maintain its current treasury strategy, which does not include Bitcoin, reflects a broader trend among major tech firms. While some companies have begun to explore the potential of cryptocurrencies, many remain wary of the volatility and regulatory uncertainties associated with digital assets. This rejection underscores the cautious approach many large corporations take towards cryptocurrencies, despite the growing interest in digital assets among some investors and tech companies.

The rejection of the Bitcoin treasury proposal also highlights the differing views within the tech industry regarding the role of cryptocurrencies. While some companies, such as Tesla and MicroStrategy, have made significant investments in Bitcoin, others, like Meta, are more cautious. This divergence in strategy reflects the ongoing debate about the future of digital currencies and their potential impact on corporate treasury management.

The outcome of the shareholder vote is a clear indication that Meta will not be adding Bitcoin to its balance sheet in the near future. The company's substantial cash reserves, totaling $72 billion, will continue to be managed through traditional financial instruments, with no plans to allocate a portion of these reserves to cryptocurrencies. This decision aligns with Meta's focus on long-term stability and growth, prioritizing traditional investment strategies over the potential risks associated with digital assets.