In the last general assembly of Meta Platforms, Bitcoin for the company’s balance sheet $104,365.15 The proposal to be added was not accepted by a large majority by the shareholders. In a notification to the US Securities and Stock Exchange Commission, the proposal was rejected by more than 5 billion votes and only 0.08 percent of the support of 0.08 percent said. Mark Zuckerberg, CEO of the company, also voted against the proposal.
Bitcoin’s balance sheet proposal and reasons
The proposal was presented in January by Ethan Peck, a Bitcoin defender and representative of the National Center for Public Policy Research. Peck argued that Bitcoin could be a protection tool in Meta’s balance sheet strategy. Peck’s proposal emphasized that BTC can protect the company’s cash assets against inflation and offer additional financial advantages. In addition, PECK claimed that Meta’s cash position at US $ 72 billion has constantly lost value.
The safe is constantly depreciating and bond returns are below real inflation. For this reason, 28 percent of the total assets of Meta constantly reduces the value of shareholders.
Despite these views of Peck, a large part of the shareholders voted in different directions. According to the reported figures, only about 4 million votes were used in favor of the proposal. Company officials decided to maintain the current strategy under the management of balance sheet.
Similar approach in other companies
Similar proposals for the use of Bitcoin in corporate balance sheets have already come up in different technology companies. Ethan Peck presented a proposal of the same type to Microsoft and Amazon. However, the managers of both companies rejected such approaches.
Matt Cole, CEO of Strive Asset Management, stood behind this proposal and brought the issue to the agenda at the Bitcoin Conference in Las Vegas. Cole said that it was time for Meta to step into Bitcoin by calling to Mark Zuckerberg.
You took the first step, you named your mascot Bitcoin. Now it’s time to take the second step.
Bitcoin in corporate investment strategies
Some corporate investors and companies were more willing to add Bitcoin to the balance sheet management. Especially companies such as Gamestop, Strategy and Metaplanet announced their plans to keep billions of dollars of BTC. Strategy has a remarkable digital asset with approximately 580 thousand BTC. These approaches point to different financial strategies in the world of technology.
On the other hand, giant companies such as Strategy’s CEO Michael Saylor and Microsoft warned not to miss the Bitcoin train. Saylor said he believes that Bitcoin, which he described as a new technological wave, offers a great opportunity for companies. However, Microsoft shareholders did not give up their current strategies.
With this decision of meta shareholders, it was the impression that most of the major technology companies were cautious about incorporating Bitcoin in their balance sheet strategies. It remains uncertain whether this approach in large technological institutions will have an impact on other sectors and investors in the coming period. It is observed that investors maintain their confidence in existing financial vehicles and continue their reservations about digital being. Despite Bitcoin’s popularity, most technology giants refrain from changing traditional investment policies.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
