Key Takeaways:
Meta’s shareholders have decisively turned down a proposal aimed at integrating Bitcoin into the company’s financial reserves. The initiative was championed by Bitcoin advocate Ethan Peck, who contended that such a move would serve as a safeguard against inflation.
According to a regulatory filing dated May 28, the proposal dubbed the “Bitcoin treasury assessment” garnered a mere 3.92 million votes in favor, accounting for only 0.08% of the total votes cast. In stark contrast, nearly 5 billion shares were cast against the proposal.
Notably, Meta CEO Mark Zuckerberg, who represents 61% of the company’s voting power, is presumed to have opposed the measure.
Bitcoin Advocate Urged Meta to Invest Part of $72B Cash in BTC
The initiative was brought forward by Ethan Peck, who in January urged the tech titan to allocate a segment of its substantial $72 billion cash reserves into Bitcoin, describing it as a potential countermeasure against inflation.
Peck articulated his position in a supporting statement, stating, “As cash continues to be debased and bond yields fall short of true inflation rates, 28% of Meta’s total assets are systematically eroding shareholder value.”
He referenced guidance from investment firm BlackRock, which suggests a 2% Bitcoin allocation could be pragmatic.
Peck, representing his family’s Meta shares, serves in the capacity of Bitcoin director at the wealth management firm Strive. He has pushed for similar measures at other prominent technology firms, including Microsoft and Amazon.
While Microsoft shareholders voted down Peck’s proposal last December, Amazon’s stakeholders are anticipated to cast their votes on a related proposal advocating a 5% Bitcoin allocation in the near future.
Analysts observe that despite skepticism among some major tech companies regarding the incorporation of volatile cryptocurrencies into their financial strategies, a transformation is underway on a global scale.
Public Companies Continue to Invest in Bitcoin
In the meantime, the trend of public companies investing in Bitcoin is on the rise. Data compiled by BitcoinTreasuries.NET shows that 116 public corporations have now included Bitcoin in their financial strategies, with newcomers like GameStop and the Swedish health technology firm H100 making recent entries.
MicroStrategy stands out as the largest corporate holder of Bitcoin, possessing 580,250 BTC with an estimated value of around $60.9 billion. Other significant players in the Bitcoin holding space include Marathon Digital Holdings and Tesla, each boasting over $1 billion in Bitcoin assets.
The burgeoning interest in digital assets has prompted numerous companies to seek funding in capital markets for substantial Bitcoin acquisitions, particularly following the cryptocurrency’s recent rally, which saw it peak at $111,965 last week. This increase of more than 50% since early April has triggered a flurry of mergers and listings as companies strive to secure capital amid heightened investor interest.
Recently, Trump Media & Technology Group announced ambitions to raise $2.5 billion for cryptocurrency acquisitions, aligning with a growing trend of firms adopting MicroStrategy’s investment approach. Additionally, French crypto holding company Blockchain Group revealed plans to further enhance its treasury strategy, announcing a $72 million Bitcoin purchase following a successful €63.3 million bond sale.
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