Voting Outcome Revealed: Meta's $72 Billion Reserve Fails to Incorporate Bitcoin, Despite Slight Support from Shareholders
Switched Perspectives: Institutional Caution and Bitcoin in Corporate Treasuries
- Meta shareholders overwhelmingly dismiss Bitcoin as a reserve for the company's treasury, aligning with the hesitant stance of large IT companies on digital assets.
- Ethan Peck from the National Center for Public Policy Research proposed investigating Bitcoin as a potential hedge against inflation and low-yielding traditional investments, but the plan received less than 0.1% of the votes cast.
Meta's Bitcoin Ban: A Clear Decision
The proposal to explore Bitcoin as a treasury investment option was rejected during Meta's annual shareholder meeting on May 28, 2025. The board of Meta voted against the request, citing the lack of strategic purpose and Bitcoin's high volatility and lingering regulatory uncertainty as the main reasons.
The board's recommendation noted that Meta's treasury strategy is designed to preserve capital, maintain sufficient liquidity, and generate returns that are appropriate for its risk profile. Since Bitcoin does not align with this strategy, the board voted to deny the proposal.
This rational stance is in line with other leading technology corporations like Microsoft and Amazon, which previously rejected similar suggestions.
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Three Persistent Barriers
- Volatility Remains a Concern: Due to its volatile nature, Bitcoin is still a non-starter for big companies. Although Bitcoin's price has soared by over 130% in the past year, the alarming drops in value, such as the 70% drop in 2022, give treasurers sleepless nights.
- Regulatory Gloom: The cryptocurrency landscape is heavily regulated, and the rules are constantly changing, making it difficult for corporations to keep up. Recent events, like the introduction of U.S. spot Bitcoin ETFs in early 2024, have made the asset class more respectable, but the lack of clarity in regulations remains a significant hurdle.
- Conservative Treasury Principles: Big Tech companies are loath to include Bitcoin on their balance sheets until the regulatory landscape is cleared up and the market matures. Despite the potential benefits of cryptocurrencies, institutional inertia remains entrenched.
Comparing Standards: Dragging Behind Tesla
While Tesla made waves in 2021 by adding $1.5 billion in Bitcoin to its balance sheet, the company has since sold a significant portion of its holdings and has not made any additional purchases since the first quarter of 2021. Bitcoin's total market cap is currently close to $1.5 trillion, yet it remains an uncommon treasury asset for major corporations.
The reluctance of institutional investors like Meta, Amazon, and Microsoft to adopt Bitcoin underscores a broader issue in the market.
The Impact: Markets' Muted Response and Industry Reactions
The vote had minimal effect on the markets, with Bitcoin's price holding steady at $68,200 after the announcement, indicating that traders had already factored in the expected result.
Cryptocurrency experts suggested that while Meta's stance was not a surprise, it highlighted the chasm between crypto enthusiasts and corporate austerity. Some proponents of the project argue that these conservative attitudes could mean missing out on long-term benefits since Bitcoin has soared by over 5,000% since Meta's IPO in 2012.
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- Meta's decision to reject Bitcoin as a treasury investment option is in line with other large technology corporations, such as Microsoft and Amazon.
- The board of Meta cited Bitcoin's high volatility, regulatory uncertainty, and lack of strategic purpose as reasons for their decision.
- Despite the potential benefits of cryptocurrencies, big tech companies remain hesitant to include them on their balance sheets due to volatility and regulatory uncertainties.
- The lack of clarity in regulations and the constantly changing landscape of cryptocurrency is a significant barrier for corporations to invest in Bitcoin.
- The conservative nature of large tech companies' treasury principles and institutional inertia continue to hinder the adoption of Bitcoin as a treasury asset.
