Meta Rejects Bitcoin Investment,Echoing Amazon and microsoft
Meta shareholders overwhelmingly voted against adding Bitcoin to the company’s treasury. Only 0.1% of shareholders supported the proposal, while 95% voted against it. This decision aligns with similar moves by Amazon and Microsoft.
Matthew Sigel, head of digital asset research at VanEck, believes tech firms are missing out on Bitcoin’s potential.He argues that Meta’s large cash reserves,which have grown from $12B in 2023 to $30B,are speculative. If the dollar’s value drops, so will their cash reserves. Bitcoin could offer a way to diversify these holdings.
Though, Sigel notes that this cash represents just 2% of Meta’s market cap. Other companies, like Netflix, Google, and verizon, hold fewer reserves or even carry important debt. Despite this, Bitcoin hasn’t gained traction among major firms.
GameStop invested $519 million in Bitcoin, hoping to boost its stock price. However, its share price fell from a high of $35 shortly after the acquisition.For prosperous businesses like Meta, Bitcoin is less appealing. Investment giants like BlackRock, Vanguard, and Fidelity prefer conventional risk management over bitcoin’s perceived risks.