The shareholders of Meta, helmed by Mark Zuckerberg, have voted against a proposition to consider the incorporation of Bitcoin into the company’s treasury at their recent annual gathering. The news was first reported by PhoenixNews on Friday, revealing approximately 8.9 million abstained votes and nearly 205 million broker non-votes.
The proposal was put forth by investor Ethan Peck, on behalf of the National Center for Public Policy Research (NCPPR). The proposal suggested that Meta should consider converting a segment of its cash and bond assets into Bitcoin, arguing it could better safeguard shareholder value.
As of the end of September 2024, Meta held $72 billion in cash, cash equivalents, and marketable securities. The proposal argues that these assets are being diminished by inflation and low yields, viewing Bitcoin as a more stable long-term value store given its fixed supply and historical performance relative to bonds.
The proposal also highlighted the growing trend of Bitcoin adoption by institutions, citing Strategy’s robust Bitcoin acquisitions, BlackRock’s 2% Bitcoin allocation endorsement, and speculation about potential US federal and state-level Bitcoin reserves in 2025.
Despite these points, Meta’s board of directors voted against the resolution, labeling it as unnecessary. The board argued that Meta already has a comprehensive treasury management process in place that prioritizes capital preservation and liquidity to sustain operations. In their view, there is no need for a separate evaluation focused on Bitcoin.
While the NCPPR has advocated for several major corporations, including Microsoft and Amazon, to adopt Bitcoin as a treasury asset, none of these efforts have proven successful to date.
Nevertheless, an increasing number of publicly traded companies are incorporating Bitcoin into their treasury strategies. There is also a rising trend of major corporations and industry players collaborating to launch Bitcoin-centric ventures, focusing on Bitcoin accumulation and infrastructure development.
Although Bitcoin may not be on Meta’s immediate agenda, the company seems to be showing a renewed interest in stablecoins, in line with its ongoing push into AI. As reported by Forbes, Meta has been exploring the integration of stablecoins into its platforms for global payouts and has held preliminary discussions with crypto infrastructure firms.
