Meta Platforms Inc. recently faced a significant shareholder backlash when a proposal to consider incorporating Bitcoin into its financial strategy was overwhelmingly rejected. In a recent proxy vote, over 5 billion votes were cast against the initiative, with a mere 4 million supporting it, reflecting a dismal 0.08% approval rate. Even CEO Mark Zuckerberg, widely regarded as a tech visionary, voted against the proposal.
The proposal originated from Bitcoin supporter Ethan Peck, who contended that integrating Bitcoin could alleviate inflationary pressures and provide strategic advantages for Meta. Peck has been vocal about the company’s current cash position, which he labelled a “consistently diminishing” asset, arguing instead for a diversified treasury approach.
Peck commented on the matter, stating, “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 urged shareholders to reconsider the value of holding Bitcoin as part of Meta’s strategy.
Matt Cole, CEO of Strive Asset Management, expressed his support for the initiative and even brought the proposal to the Bitcoin Conference in Las Vegas, encouraging Zuckerberg to take inspiration from the firm’s brand symbol: “You’ve already taken step one—you named your goat Bitcoin. Now it’s time to take step two.”
Peck has previously attempted to persuade tech giants Microsoft and Amazon to adopt similar Bitcoin strategies, but both companies have also turned down his proposals. Notably, figures such as Michael Saylor from Strategy have relentlessly championed Bitcoin as a pivotal component of corporate strategy, with some companies like GameStop and Metaplanet now publicly declaring their intention to hold substantial amounts of Bitcoin. Strategy itself holds over 580,000 BTC, valued at approximately AU$97 billion.
The recent decision by Meta mirrors a growing trend among major technology firms to shy away from Bitcoin treasury strategies, contrasting sharply with a subset of institutional investors who are embracing cryptocurrency as part of their financial portfolios. This has led to a widening divide between traditional tech companies and those willing to adopt innovative financial strategies that include holding digital assets.
In conclusion, the near-unanimous rejection within Meta’s shareholder base signals a cautious approach toward Bitcoin, with many stakeholders still unconvinced of its viability in corporate finance. As the landscape of finance continues to evolve, it remains to be seen whether public sentiment and investment strategies will shift in favour of incorporating cryptocurrencies like Bitcoin into traditional business models.
