Twitter Inc, the social media giant with over $54 billion in market cap, hinted at following Tesla’s lead and holding Bitcoin in their balance sheet.
Ned Segal, Twitter’s Chief Financial Officer, said in an interview:
“We’ve done a lot of the upfront thinking to consider how we might pay employees should they ask to be paid in bitcoin, how we might pay a vendor if they asked to be paid in bitcoin and whether we need to have bitcoin on our balance sheet should that happen. We want to be thoughtful about it over time, but we haven’t made any changes yet.”
Twitter vs Tesla: How Much Are They Going To Invest
As of 2019, Twitter held around $2B in cash with $4.8B locked in short term investments. In contrast, Tesla had $6.5 billion in cash in 2019 and nothing in short-term investments, giving them the freedom required to buy $1.5B worth of Bitcoin. As such, Twitter's investment is going to be a lot lesser than Tesla's. However, this is another tick mark in the Bitcoin column to add further credibility to its rise as a legit diversifier.
Jack Dorsey and Bitcoin
Square, which Jack Dorsey also founded, invested $50 million in bitcoin, which is about 5% of their $1 billion cash holdings and has around half a billion in short-term investments. Following their Bitcoin investment, Square’s Chief Financial Officer, Amrita Ahuja, said:
“We believe that bitcoin has the potential to be a more ubiquitous currency in the future. As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.”
Dorsey believes that Bitcoin will one day become the world's "single currency" and aims to make it easily accessible via Square's Cash App. Plus, it seems like he has recently launched his own Bitcoin node to help validate transactions and blocks on the network. Last Friday, he shared an image on Twitter to show his node in action and synchronizing with the bitcoin blockchain.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.