Meta Platforms’ (META) Stockholders Shoot Down Bitcoin Strategy

Meta Platforms’ (META) shareholders have voted against a proposal to add Bitcoin (BTC) to the company’s balance sheet.

A filing with the U.S. Securities and Exchange Commission (SEC) shows that only 3.92 million votes supported the Bitcoin proposal, while nearly five billion votes cast in opposition to it. The proposal for Meta to hold Bitcoin was put forward by Ethan Peck, a cryptocurrency advocate who works as the Bitcoin director for the wealth management firm Strive.

Peck called for Meta to use a portion of its $72 billion cash reserves to begin buying Bitcoin, arguing that it would serve as a hedge against inflation for the company. The proposal further argued that Meta Platforms should treat Bitcoin as a strategic reserve asset, similar to a corporate war chest.

Dabbling in Crypto

Peck had previously targeted technology companies Microsoft (MSFT) and Amazon (AMZN) with similar Bitcoin proposals. Microsoft shareholders voted against the plan, while Amazon has not yet held a vote. Although Meta doesn’t hold crypto on its balance sheet, the company has dabbled in blockchain technologies over the years.

In 2019, the company launched Libra, a global stablecoin project backed by a basket of fiat currencies. That effort failed in 2022 after regulatory issues and internal problems. More recently, it has been reported that Meta is exploring the use of stablecoins to manage payments across its various apps.

META stock has gained 12% this year.

Is META Stock a Buy?

The stock of Meta Platforms has a consensus Strong Buy rating among 45 Wall Street analysts. That rating is based on 41 Buy, three Hold, and one Sell recommendations issued in the past three months. The average META price target of $696.12 implies 4.45% upside from current levels.

Read more analyst ratings on META stock