Meta Shareholders Reject Bitcoin Treasury Bid

In a decisive move that underscores a prevailing sentiment among tech behemoths, shareholders of Meta Platforms Inc. have overwhelmingly rejected a proposal to incorporate Bitcoin into the company’s treasury strategy. The vote, detailed in a recent regulatory filing, saw a mere 0.1% of shareholder votes in favor, with a resounding 95% opposing the motion.

This outcome places Meta firmly alongside other industry giants like Microsoft and Amazon, whose shareholders have also recently spurned similar overtures to add the flagship cryptocurrency to their corporate balance sheets. The proposal at Meta, introduced in January by Ethan Peck of the National Center for Public Policy Research, advocated for the allocation of a portion of Meta’s substantial $72 billion cash and cash equivalents into Bitcoin, citing its potential as an “inflation-resistant store of value.”

The rejection, however, wasn’t entirely unexpected within treasury circles. While a burgeoning class of companies, notably Michael Saylor’s Strategy (formerly MicroStrategy) and Japanese firm Metaplanet, have made headlines and seen significant stock appreciation by aggressively converting cash reserves into Bitcoin, the calculus for titans like Meta appears markedly different.

For these established, profitable enterprises, the inherent volatility of Bitcoin and the nascent regulatory landscape surrounding digital assets present risks that, for now, outweigh the touted benefits of diversification or inflation hedging. Matthew Sigel, Head of Digital Asset Research at VanEck, commented on the broader trend, suggesting that while tech firms like Meta hold significant cash reserves – Meta’s hoard grew from $12 billion in 2023 to a reported $30 billion, which itself carries currency risk – the leap to Bitcoin is still a bridge too far for their conservative treasury functions.

“They are already hoarding fiat,” Sigel noted, implying that while current cash strategies are not without their own speculative elements, the well-understood risks of fiat currency are, for now, preferable to the less predictable nature of crypto assets for these corporations.

Indeed, the profile of companies actively embracing Bitcoin treasuries often differs. Firms like Metaplanet, which recently increased its Bitcoin holdings to 8,888 BTC and reported a staggering 225% yield on its BTC-purchasing strategy over the past 12 months, operate with a fundamentally different risk appetite and market perception. Similarly, Strategy has built a multi-billion dollar Bitcoin position, making it a proxy investment for Bitcoin itself. Even GameStop’s reported $519 million foray into Bitcoin was seen by some analysts as a move by a company seeking to reignite investor interest amidst challenges in its core business.

For Meta, the focus appears laser-set on other frontiers. The company’s stock recently saw a lift following reports of ambitious plans to deploy a fully AI-driven advertising engine by 2026. This strategic direction, coupled with the lingering shadows of its own past blockchain ambitions with the Libra/Diem project, likely informs the board and shareholders’ current disinterest in venturing into crypto asset management.

While proponents continue to appeal for Bitcoin adoption at major corporations, the message from Meta’s shareholders is clear: stability and a focus on core technological advancements, particularly in AI, are the current order of the day. The decision doesn’t necessarily close the door on future considerations.

However, for Meta and its Big Tech peers, the prevailing winds suggest a cautious “wait and see” approach. The potential for Bitcoin to serve as a corporate treasury asset remains a compelling narrative, but one that, for the largest players, is still being written on the sidelines rather than in their ledgers. The focus remains on traditional risk management and strategic investments in proven, albeit rapidly evolving, technological domains.