What happened?
After the vote, the majority of Meta shareholders do not expect Bitcoin to be included in the company's asset allocation and emphasize that the company's current financial management system has sufficient resilience and efficiency.
The proposal initiator believes that under the continuous devaluation of fiat currency, Meta's assets may be affected and lead to a decrease in value, causing losses to shareholders, while Bitcoin has the opportunity to outperform inflation.
Meta's choice does not completely reject blockchain technology. According to reports, Meta is currently considering integrating stablecoins into its platform to support cross-border payment and other business functions.
Meta shareholders vote not to include Bitcoin in asset allocation
An increasing number of companies are including Bitcoin in their asset allocation, but tech giant Meta has no plans to follow suit. According to regulatory documents submitted by Meta on May 28, shareholders overwhelmingly voted against the proposal to include Bitcoin in part of the asset allocation.
This proposal put forward by Ethan Peck, Bitcoin director at asset management company Strive, received only about 3.92 million votes in support, accounting for just 0.08% of the total voting rights; in contrast, nearly 5 billion shares voted against, along with 8.9 million abstentions, and 205 million votes counted as invalid (broker non-votes).
According to foreign media reports, Meta CEO Mark Zuckerberg holds 61% of the voting rights, which means he is likely to cast a dissenting vote. The Meta board publicly opposed the proposal before the vote, emphasizing that the company's current financial management system has sufficient resilience and efficiency, and there is no need for additional assessment of cryptocurrency assets.
Most tech giants have 'not followed suit'
Proposal initiator Peck pointed out that Meta currently holds up to $72 billion in cash and cash-equivalent assets, but under the continuous devaluation of fiat currency, about 30% of its assets are quietly shrinking, which is a significant loss for shareholders. He argues that Bitcoin, as a limited supply digital asset, has the opportunity to outperform inflation and improve asset allocation efficiency.
Peck added in the proposal that BlackRock, the largest asset management company in the U.S. and Meta's second-largest shareholder, had suggested that the company allocate 2% of its assets to Bitcoin.
According to reports, Peck provided the suggestion based on his family’s shareholding status. He had also proposed similar proposals to Microsoft and Amazon in 2024. However, Microsoft shareholders voted down the proposal in December 2024, while Amazon is expected to hold a vote this year.
Nick Cowan, CEO of fintech company Valereum, analyzed that tech giants prefer to invest funds in research and development or acquisitions rather than allocating to the more volatile Bitcoin.
Bloomberg ETF analyst Eric Balchunas once described: 'If companies like Meta or Microsoft buy Bitcoin, the impact could far exceed that of dozens of small and medium-sized enterprises entering the market. Just like when Tom Hanks was diagnosed with COVID, it made people truly realize the seriousness of the pandemic.'
However, choosing not to include Bitcoin in reserves does not mean that Meta completely rejects blockchain technology. According to foreign media reports, Meta has discussed with several crypto infrastructure companies the possibility of integrating stablecoins into its platform to support cross-border payment and other business functions.
Source: Cointelegraph, BeInCrypto
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