Meta says no to Bitcoin: the proposal is rejected

Meta, the technology giant led by Mark Zuckerberg, has recently overwhelmingly rejected a proposal for Bitcoin that could have marked a turning point in the management of its financial reserves.

During the last shareholders’ meeting, the idea of converting a portion of the 72 billion dollars in cash and equivalents held on the balance sheet into Bitcoin was put to a vote. However, the response was a firm rejection.

According to a document filed on May 28 with the United States Securities and Exchange Commission (SEC), only 3.92 million votes were in favor of the proposal, amounting to a mere 0.08% of the total. 

On the contrary, almost 5 billion votes were cast against the initiative, marking a clear opposition from the shareholders.

An avalanche of votes against the investment proposal in Bitcoin for Meta 

The idea of pushing Meta towards the adoption of Bitcoin as a strategic reserve did not originate within the company. It was proposed by Ethan Peck, a well-known supporter of the cryptocurrency and currently the director for Bitcoin at the asset management company Strive. 

Peck presented the measure in January, arguing that Meta should diversify its reserves in response to the uncertainty of global monetary policies.

According to Peck, Bitcoin represents a form of “strategic reserve,” a genuine “corporate treasure” capable of protecting the company from inflation and fluctuations in the value of the dollar. 

The proposal, however, did not find fertile ground among Meta investors, who preferred to maintain a more traditional approach in the management of corporate finances.

The campaign by Peck was not limited to Meta. The same type of proposal was also presented to the shareholders of Microsoft and Amazon, always on behalf of the National Center for Public Policy Research (NCPPR), a conservative think tank. 

Even in that case, the response was not favorable. The shareholders of Microsoft have indeed already voted against the measure, while Amazon has not yet expressed its official opinion.

This series of initiatives is part of a broader attempt to push large tech companies to adopt Bitcoin as a strategic asset, but so far the results have been disappointing for the bull and bear supporters of the cryptocurrency.

Despite the refusal to integrate Bitcoin into its balance sheet, Meta is not entirely unfamiliar with the world of cryptocurrencies and blockchain. In 2019, the company announced the Libra project, a global stablecoin backed by a basket of fiat currencies. 

The initiative, which had sparked great interest and concern among regulators, was later renamed Diem and was ultimately abandoned in 2022 due to regulatory pressures and internal difficulties.

A stock on the rise despite the refusal

Even though today Meta does not hold cryptovalute in its balance sheets, the company has continued to explore blockchain-related solutions. 

At the beginning of 2024, rumors emerged that Meta was considering the use of stablecoins to facilitate payments within its platforms, including Facebook, Instagram, and WhatsApp. 

However, the overall strategy of the company in the crypto field remains unclear. The decision of the shareholders to reject the proposal does not seem to have had a negative impact on the market. 

On the contrary, Meta’s shares recorded an increase of 3.5% on Monday, reaching a value of 670.09 dollars per share. 

This data suggests that investors continue to have confidence in the strategic direction of the company, even without the inclusion of Bitcoin among the financial assets. The verdict of Meta’s shareholders reflects a prudent and conservative approach towards cryptocurrencies.

Despite the growing popularity of Bitcoin as a safe haven asset and its adoption by some companies, as in the case of MicroStrategy, many large tech groups still prefer to maintain a safe distance.

With 72 billion dollars in liquidity available, Meta certainly has the capacity to explore new paths. However, the clear rejection of Peck’s proposal indicates that, at least for now, the priority is financial stability rather than high-risk innovation.

Conclusions: Bitcoin remains off Meta’s balance sheet

The shareholders’ meeting was clear: Bitcoin will not be included in Meta’s balance sheet. The proposal, although ambitious, did not convince the investors, who preferred to maintain a more traditional financial profile. 

It remains to be seen whether in the future the tech giant will change course, perhaps in response to shifts in the global economic landscape or to new pressures from the market.

For now, however, Meta continues to look at the world of cryptocurrencies with interest but with caution. Thus keeping its cash reserves and leaving Bitcoin out the door.