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Meta shareholders have overwhelmingly rejected a proposal to invest a portion of the company's substantial cash reserves into Bitcoin. The decision, revealed in a recent regulatory filing, signals a clear stance against integrating the volatile cryptocurrency into the tech giant's treasury strategy, despite arguments for its potential as an inflation hedge.
Shareholder Rejection of Bitcoin Treasury Proposal
Meta's shareholders decisively voted against a proposal advocating for the company to assess adding Bitcoin to its balance sheet. A mere 0.08% of the total votes, amounting to 3.92 million, favored the measure, while nearly 5 billion votes were cast against it. This lopsided outcome suggests a strong consensus among shareholders to maintain Meta's current financial strategy.
The Proposal's Origin and Rationale
The rejected proposal originated in January from Bitcoin advocate Ethan Peck. Peck, representing his family's shares in Meta and serving as Bitcoin director for wealth management firm Strive, urged Meta to allocate a portion of its $72 billion cash and cash equivalents to Bitcoin. His primary argument was that Bitcoin could serve as a hedge against inflation, stating that "Since cash is consistently being debased and bond yields are lower than the true inflation rate, 28% of Meta’s total assets are consistently diminishing shareholder value."
Key Takeaways
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The proposal received minimal support, with only 0.08% of votes in favor.
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Meta CEO Mark Zuckerberg, who controls 61% of the company's voting power, likely voted against the proposal.
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Ethan Peck, the proponent, also cited BlackRock's advice that a 2% Bitcoin allocation is reasonable.
Broader Context: Other Tech Giants and Corporate Bitcoin Adoption
Peck has also submitted similar Bitcoin treasury proposals to other major tech companies. Microsoft shareholders rejected his proposal in December, while Amazon shareholders are still awaiting a vote on a proposal to allocate at least 5% of the company's assets to Bitcoin. Despite these rejections from some tech giants, corporate adoption of Bitcoin is on the rise globally. Data from BitcoinTreasures.NET indicates that 116 public companies have added Bitcoin to their balance sheets, including recent entrants like GameStop and Swedish health tech firm H100. MicroStrategy leads this trend with a substantial holding of 580,250 Bitcoin, valued at $60.9 billion, and eight other companies, including Tesla, each hold over $1 billion in Bitcoin.
Sources
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Meta won’t buy Bitcoin as shareholders knock back treasury idea — TradingView News, TradingView.
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Meta shareholders knock back Bitcoin treasury idea, Cointelegraph.
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