Meta shareholders overwhelmingly rejected a proposal to assess whether Bitcoin (BTC) should be added to the tech giant's balance sheet.
According to a regulatory filing on May 28, the "Bitcoin Treasury Assessment" proposal put forth by shareholders received only 3.92 million votes in support, accounting for 0.08% of the total votes, while nearly 5 billion votes opposed the measure.
A regulatory statement from April indicated that Meta CEO Mark Zuckerberg controls 61% of the company's voting power, which may suggest he voted against the proposal.
The lopsided voting result stemmed from a shareholder proposal introduced in January by Bitcoin advocate Ethan Peck, who called for Meta to invest a portion of its $72 billion in cash and cash equivalents into Bitcoin (BTC), claiming it would serve as a hedge against inflation.
Ethan argued in his supporting statement, "As cash continues to depreciate and bond yields fall below actual inflation rates, 28% of Meta's total assets have been consistently eroding shareholder value."
Ethan, who serves as the Bitcoin director at wealth management firm Strive, also pointed out that Meta's second-largest shareholder, BlackRock, suggested a 2% allocation to Bitcoin is reasonable.
The Bitcoin supporter submitted the proposal on behalf of his family’s shares in the social media giant.
Ethan also submitted a similar Bitcoin treasury proposal to Microsoft and Amazon last year on behalf of the conservative think tank National Center for Public Policy Research (NCPPR).
Microsoft shareholders voted against Ethan's proposal in December, while Amazon shareholders are still awaiting the voting results on whether to allocate at least 5% of the company's assets to Bitcoin.
Nick Cowan, CEO of fintech company Valereum, stated in December to Cointelegraph that Amazon has a better track record than many other large tech companies in adopting emerging technologies and exploring new types of investments.
However, he noted that the opportunity cost of holding highly volatile assets like Bitcoin instead of investing in R&D or acquisitions could have significant implications for shareholders.
While the Bitcoin proposals from Meta and Microsoft were rejected, publicly traded companies around the world have begun purchasing Bitcoin.
According to data from BitcoinTreasures.NET, 116 publicly traded companies have added Bitcoin to their balance sheets, with some of the latest entrants including GameStop and Swedish health tech company H100, both of which made their first Bitcoin purchases last month.
Michael Saylor's MicroStrategy leads all publicly traded companies, holding 580,250 Bitcoins worth $6.09 billion, while eight other companies, including Marathon Digital Holdings and Tesla, each hold over $1 billion in Bitcoin.
Related: BlackRock's Bitcoin (BTC) ETF futures debut in Moscow, ranking among the top 25 ETFs globally
Original article: “Meta Will Not Purchase Bitcoin (BTC) After Shareholders Reject Treasury Proposal”
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