Meta Just Said NO to Bitcoin. Here’s What That Means

Meta shut down a proposal to add Bitcoin to its $72 billion in cash reserves. The rejection vote? A wild 1,221 to 1. Ouch. 😬

This isn’t the first time Big Tech said “nah” to crypto. Microsoft did the same last year. These firms still see Bitcoin as too risky.

Corporate cash reserves are like rainy day funds—not a place for wild bets. They fund operations and emergencies, not moonshots.

NYU professor Aswath Damodaran called the Meta idea “lunacy.” He sees no good reason to keep Bitcoin on the balance sheet.

Even Duke’s Campbell Harvey, a fan of blockchain, said: if investors want Bitcoin, they should buy it themselves.

Stablecoins? That’s a different story. They’re more stable (duh) and pegged to the dollar. Bitcoin? Rollercoaster mode 🎢.

One exception? Strategy. They went all in on BTC back in 2020. Their stock blew up—up 2,466%! That’s wild. But it’s not a treasury move. It’s more like a crypto startup bet.

Meanwhile, Meta sits on piles of cash earning peanuts. Critics say they should diversify a little—maybe hedge against inflation.

James Butterfill from CoinShares says even a 3% BTC allocation boosts a fund’s Sharpe ratio—a fancy metric for smart investing.*
(*Sharpe Ratio: measures performance adjusted for risk.)

CoinShares reports that digital asset allocation jumped from 1% to 1.8% in just six months. Momentum? Definitely.

But Meta’s vote hints at caution. And let’s be real: Zuckerberg controls 61% of the votes. So, yeah… it’s complicated.

Different firms, different views. Some say no, others buy big. BlackRock even recommends 2% BTC in portfolios now.

Across the globe, treasury moves are heating up. Firms in Korea and Paris just dropped millions into Bitcoin. Everyone wants in.

Butterfill says 72 companies added BTC this year. But some may be chasing hype to pump their stock price. That’s not strategy.

Big question: Will a huge non-crypto company finally take the leap? Tesla did it. Who’s next?

Oh, and that “Bitcoin is too volatile” argument? Butterfill says Bitcoin’s been less volatile than Meta lately. Let that sink in.