Meta Shareholders Overwhelmingly Reject Bitcoin Treasury Proposal

Meta Platforms Inc., the tech giant formerly known as Facebook, experienced a decisive shareholder vote against a proposal to include Bitcoin in its corporate treasury strategy. The vote resulted in 4.98 billion shares opposing (99.9%), 3.92 million shares in favor (0.08%), 8.85 million abstaining, and 205 million broker non-votes.

The proposal, introduced by Bitcoin advocate Ethan Peck, director of Bitcoin at wealth management firm Strive, suggested allocating a portion of Meta's $72 billion cash reserves to Bitcoin. Peck argued that holding Bitcoin could serve as a hedge against inflation and enhance shareholder value, citing BlackRock's recommendation for a 2% allocation to Bitcoin as a reasonable strategy. However, the proposal faced significant resistance, with Meta CEO Mark Zuckerberg, who controls 61% of the voting power, likely casting his vote against the measure.

Corporate Caution Toward Bitcoin Investment

The rejection reflects a broader trend among large corporations, which remain hesitant to adopt cryptocurrencies as part of their financial strategies. Concerns over Bitcoin's volatility, regulatory uncertainties, and the lack of clear governmental guidelines were among the primary reasons cited for the proposal's failure.

Meta's shareholders appeared to prioritize stability and predictability in financial management, particularly given the company's highly competitive and rapidly evolving technological landscape. Critics of the proposal viewed it as a deviation from Meta's core business focus on social media and technological innovation. As one observer noted, Meta’s decision to maintain its traditional treasury strategy underscores its commitment to its primary business objectives.

Meta's Cautious History

This cautious approach is consistent with Meta's previous experiences with blockchain technology. The company had launched its Libra stablecoin project in 2019, which was later rebranded as Diem before being shut down in 2022 due to regulatory backlash and internal challenges.

Later in December 2024, Meta’s shareholders voted against the proposal submitted by the DC-based organization in a meeting. The proposal recommended that Microsoft allocate at least 1% of its $484 billion assets to Bitcoin. Meta’s board formally recommended against the proposal. In its remarks, the board called the proposal “unnecessary” and said the company “already carefully considers this topic.”

Implications for the Crypto Industry

The vote outcome is seen as a setback for proponents of institutional Bitcoin adoption. Many had hoped that Meta, as a major player in the tech industry, could lead the way in integrating digital assets into corporate financial strategies. However, the rejection highlights the persistent skepticism among corporate stakeholders regarding cryptocurrencies.

Ethan Peck, the advocate behind Meta's Bitcoin treasury proposal, has also targeted other major tech companies like Microsoft and Amazon with similar initiatives. While Microsoft shareholders have already voted against such a plan, Amazon is expected to hold a vote on a related proposal in the coming months, which suggests a 5% Bitcoin allocation to its reserves.

Analysts observe that while many Big Tech firms, including Meta, remain cautious about incorporating volatile crypto assets into their balance sheets, the global landscape is gradually evolving. Despite increasing interest in digital assets across various industries, Meta appears steadfast in adhering to its existing financial strategy and focusing on its core business. This reflects a broader trend among large-cap tech firms, which continue to prioritize financial stability and predictability over speculative investments like Bitcoin.