Golden Finance reported that at the annual general meeting of Meta Platforms held on May 30th, a proposal to add Bitcoin (BTC) to the company’s $72 billion cash reserve was rejected by shareholders. The voting results of this time were vastly different. The number of opposing votes was as high as 4.98 billion shares, while the number of affirmative votes was only 3.92 million shares. The opposing opinions held an absolute dominant position.
The proposal was submitted by Ethan Peck of the National Center for Public Policy Research in the United States. Its original intention was to suggest that Meta convert some of its remaining cash into Bitcoin to “hedge against the risk of falling bond yields”. Peck believes that in the current economic environment, bond yields continue to decline, and traditional cash reserve methods are facing the risk of depreciation. However, Bitcoin has scarcity and potential for appreciation, and can provide a certain role in preserving and increasing the value of a company’s assets.
However, judging from the voting tendencies of the shareholders, the vast majority do not agree with this view. Meta, a globally renowned tech giant, holds a significant position in fields such as social media and virtual reality, and its cash reserve management decisions have drawn much attention. Most shareholders may believe that the Bitcoin market is highly volatile with sharp price fluctuations, and including it in the company’s reserves would bring great uncertainty to the company’s financial situation. Although Bitcoin has shown astonishing price increases over the past few years, it has also experienced multiple sharp declines. This unstable nature may not be in line with Meta’s prudent financial strategy.
In addition, the regulatory environment for Bitcoin remains unclear. Regulatory policies on Bitcoin vary greatly among countries around the world. Some countries adopt a cautious attitude and even take restrictive measures. For a multinational company like Meta, venturing into the Bitcoin field may involve complex legal and compliance issues, increasing the operational risks of the company. In contrast, Meta’s current cash reserves mainly exist in the form of traditional financial assets, which are protected by a relatively mature financial regulatory system and have relatively controllable risks.
The rejection of this proposal also reflects the cautious attitude of Meta shareholders towards the company’s asset allocation. Against the backdrop of a complex and volatile global economic situation, shareholders are more inclined to maintain the company’s existing stable financial structure to ensure the safety and liquidity of assets. In the future, Meta is expected to continue to manage its cash reserves mainly with traditional financial tools, and will continue to seek innovation and development in core business areas to enhance the company’s long-term competitiveness. It will not easily venture into the high-risk cryptocurrency field.
Related Topics:
- The floating loss of the long position of Bitcoin by the giant whale James Wynn expanded to 4 million US dollars, and the margin call price was 104,610 US dollars
- The RWA stablecoin sUSD has been extended to the Base network through Wormhole NTT
- Former government efficiency department employee: DOGE may be paralyzed after Musk’s departure
