- Meta shareholders rejected a proposal to explore adding Bitcoin to the company’s $72 billion treasury, despite growing investor interest in crypto assets.
- The proposal argued Bitcoin’s fixed supply and inflation-hedging potential could better preserve shareholder value than cash and bonds.
- Meta’s board opposed the initiative, citing existing treasury strategies and deeming a Bitcoin evaluation unnecessary.
At Meta’s recent annual shareholders meeting, investors voted against a proposal urging the company to explore adding Bitcoin to its corporate treasury. The initiative, introduced by investor Ethan Peck on behalf of the National Center for Public Policy Research (NCPPR), aimed to push Meta, the tech giant formerly known as Facebook, to assess whether converting some of its massive cash reserves into Bitcoin could help preserve shareholder value more effectively.
Meta currently holds a staggering $72 billion in cash, cash equivalents, and marketable securities as of the end of September 2024. The proposal argued that these holdings, predominantly in cash and bonds, risk losing value over time due to inflation and low returns. By contrast, Bitcoin, with its fixed supply cap of 21 million coins and its history of strong performance relative to traditional assets like bonds, was presented as a more reliable store of value and a potential hedge against inflation.
Ethan Peck and the NCPPR emphasized that institutional adoption of Bitcoin is gaining significant traction. They cited examples such as Strategy’s aggressive Bitcoin purchases, BlackRock’s endorsement of allocating a small percentage of assets to Bitcoin, and speculation about the U.S. government possibly establishing Bitcoin reserves at the federal and state levels by 2025. These developments underscore Bitcoin’s increasing legitimacy as a mainstream financial asset.
Meta Board Rejects Bitcoin Despite Crypto Interest
Interestingly, the proposal also highlighted informal signs of crypto enthusiasm within Meta’s leadership. Mark Zuckerberg, Meta’s CEO, famously named his goats “Bitcoin” and “Max,” signaling a subtle nod to crypto culture. Additionally, board member Marc Andreessen holds a position on Coinbase’s board, one of the leading cryptocurrency exchanges, further linking Meta’s top leadership to the crypto ecosystem.
Despite these factors, Meta’s board of directors firmly opposed the proposal. They characterized it as unnecessary, pointing out that the company already employs a sophisticated treasury management strategy focused on preserving capital and maintaining liquidity. According to their statement, the company regularly evaluates a broad spectrum of investable assets and sees no need for a dedicated assessment specifically on Bitcoin.
The board clarified, “While we are not commenting on the merits of cryptocurrency investments relative to other asset classes, the requested evaluation is unnecessary due to our existing processes to manage the corporate treasury effectively.”
Meta Joins Stablecoin Race as Bitcoin Treasury Moves Stall
The rejection of the Bitcoin proposal at Meta mirrors similar outcomes at other tech giants. The NCPPR has actively promoted Bitcoin adoption across major corporations, including Microsoft and Amazon, urging them to diversify treasury holdings with Bitcoin. However, these efforts have consistently fallen short. For instance, Microsoft shareholders voted down a comparable Bitcoin proposal in December 2024, rejecting the idea of adding Bitcoin to their balance sheet.
Nonetheless, the broader corporate landscape is slowly shifting. A growing number of publicly traded companies are embracing Bitcoin as part of their treasury management, seeing it as a viable hedge and a way to diversify assets. Parallel to this, several industry players and large firms are launching Bitcoin-focused ventures dedicated to accumulating the cryptocurrency and building the infrastructure needed to support its mainstream adoption.
While Bitcoin may not yet be on Meta’s treasury roadmap, the company appears to be rekindling its interest in the crypto space through stablecoins. Reports from Forbes indicate that Meta is exploring integrating stablecoins into its platforms to facilitate global payouts, signaling a potential re-entry into crypto after its previous exit due to regulatory challenges with its Diem project.
Meta’s renewed focus on stablecoins is aimed at enabling faster, more cost-effective cross-border payments, providing an alternative to traditional financial systems. This initiative aligns with Meta’s broader ambitions in artificial intelligence and digital financial services, hinting that while Bitcoin is off the table for now, blockchain technology remains very much part of Meta’s long-term strategic vision.
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