Meta shareholders have overwhelmingly rejected a proposal to assess whether the company should add Bitcoin to its balance sheet.
The “Bitcoin treasury assessment” proposal put before shareholders received 3.92 million votes in favor – a mere 0.08% of the total – while nearly 5 billion voters decided against the measure, according to a May 28 regulatory filing. The proposal, submitted by investor Ethan Peck representing the National Center for Public Policy Research, asked Meta to evaluate whether converting a portion of its cash and bond holdings into Bitcoin would better preserve shareholder value.
Peck argued that since cash is consistently being debased and bond yields are lower than the true inflation rate, 28% of Meta’s total assets are consistently diminishing shareholder value. He also noted that Meta’s second – largest shareholder, BlackRock, advised that a 2% Bitcoin allocation is reasonable.
However, Meta’s board of directors opposed the resolution, calling it unnecessary. The board stated that Meta already has a robust treasury management process, which prioritizes capital preservation and liquidity to support operations. It added that Meta regularly evaluates a broad range of investable assets and did not see a need for a separate assessment focused on Bitcoin.
Shareholders who opposed the proposal cited stability risks and regulatory risks as the two primary reasons for their decision. Bitcoin is notorious for its price volatility, and its value can fluctuate dramatically in short periods, which could introduce unwelcome instability into the company’s financial statements. Additionally, the global regulatory landscape for cryptocurrencies remains fragmented and uncertain, which may create complex compliance burdens or even pose legal or reputational challenges for the company.
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