Facebook (NASDAQ: FB), perhaps the most widely known social networking site today, is rumored to have bought Bitcoin for its balance sheet.
According to Alistair Milne, Chief Information Officer at Altana Digital Currency Fund, the rumor suggests that Facebook is set to announce that they hold Bitcoin on their books in time with the release of their quarterly results. This is projected to happen as the trading day closes tomorrow.
Facebook’s foray into digital currencies and cryptocurrencies is not altogether new, and has been subject to criticism from global regulators in the past years. Currently, Facebook Financial (F2), which is Facebook’s financial division, is set to launch its two crypto-related projects: Diem, and Novi.
Diem is the new rebranded name for Facebook’s Libra cryptocurrency project. Details for the project suggest that it will be a stablecoin based on a fiat currency. It is now run by a consortium, the Diem Association. The Diem Association includes LYFT Inc. (NASDAQ:LYFT), Uber Technologies Inc. (NYSE:UBER), Shopify Inc. (NYSE:SHOP), and the recently public Coinbase (NASDAQ:COIN).
Novi is the rebranded name for Facebook’s digital wallet, which was initially named as Calibra. David Marcus, head of Facebook Financial, has suggested in December 2020 that the planned launch should arrive this year. However, no further information or announcement has been released by the Diem Association at the time of writing.
According to Facebook’s Q4 2020 financial report, the company is set to leverage the rise of online commerce during the pandemic. “I'm excited about our product roadmap for 2021 as we build new and meaningful ways to create economic opportunity, build community and help people just have fun,” shared Facebook CEO and founder Mark Zuckerberg.
With the Q1 2021 financial report set for release tomorrow, the rumors that Facebook is holding or has held Bitcoin on its balance sheet seem plausible, in this writer’s opinion. It’s likely to be the case since Facebook is a top tech company, and its public stock is comparable to other tech companies like Tesla (NASDAQ:TSLA) that have actively engaged in cryptocurrencies in the past quarter.
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.