Why 95% Meta Shareholders Rejected Bitcoin Treasury Proposal?

In a big move, an overwhelming 95% of Meta shareholders have voted against building a Bitcoin Treasury, with just 0.1% voting in favour. With this, the tech giant joins its peers like Amazon and Microsoft in rejecting the proposal to add BTC to the balance sheet. On the other hand, companies like Strategy, Metaplanet, Semler Scientific, etc. have been rushing to build their BTC reserves.

Why Meta and Other Big Tech Reject Bitcoin Treasury?

Following Michael Saylor’s Strategy, several companies have joined the Bitcoin bandwagon over the past two years. Names like Metaplanet, Semler Scientific, etc. have gained even more prominence through their periodic purchases.

Most of these companies saw their stock price skyrocket soon after announcing the Bitcoin Treasury plan. However, big tech giants have refused to join the Saylor ship, despite having massive cash on their balance sheets.

Renowned crypto analyst Willy Woo stated that growing companies like Meta, Amazon, and Microsoft usually prefer building a Bitcoin Treasury as they “prioritize control of their destiny”. The analyst explains that the volatility of Bitcoin can be a major deterrent to the shareholders of such firms. Crypto investor at VanEck, Gabe Rabello, sided with Meta shareholders, noting:

“Maybe hot take on CT but I would also vote against. Meta should be investing in its business or returning capital to shareholders — not hoarding a treasury (whether it’s BTC or anything else)”.

Since 2023, Mark Zuckerberg’s Meta has increased its cash reserves from $12 billion to now at $30 billion. Despite this, BTC doesn’t remain a choice for shareholders to nimble around.

Woo Explains Why Startups Prefer Bitcoin Reserves

On the other hand, Woo highlighted that Bitcoin treasuries are most practical for businesses and startups that are less impacted by market fluctuations and willing to embrace volatility as part of their strategy. Interestingly, Trump Media has been the latest to announce its $2.5 billion Bitcoin Treasury plan.

Satoshi Nakamoto To Overtake Meta’s Mark Zuckerberg

With 1.09 million in Bitcoin Holdings, BTC founder Satoshi Nakamoto remains the largest BTC holder. With 660,842 BTC, BlackRock’s IBIT is the second-largest holder at the moment.

Eric Balchunas, Bloomberg’s Senior ETF Strategist, shared an interesting observation that If Bitcoin maintains its historical annual growth rate of 50%, Satoshi Nakamoto could surpass Warren Buffett in wealth rankings this year and potentially overtake Mark Zuckerberg by next year to become the world’s second-richest individual, after Elon Musk.