Facebook Rumoured to Hold Bitcoin, Expected to Reveal It Making Q1 Earnings Report Tomorrow

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by Benjamin Godfrey · 3 min read
Facebook Rumoured to Hold Bitcoin, Expected to Reveal It Making Q1 Earnings Report Tomorrow
Photo: Depositphotos

Alistair Milne says that tomorrow making its Q1 earnings report Facebook will reveal that it holds Bitcoin on its books.

It was not so long ago when Tesla Inc (NASDAQ: TSLA) made headlines with its investment pushed in BTC. But now there is another giant that is expected to reveal its relations with Bitcoin. We are talking about Facebook Inc (NASDAQ: FB). There appeared some rumours that tomorrow Facebook will reveal not only its earnings report but also its Bitcoin holdings.

There is no official confirmation yet but Bitcoin investor Alistair Milne is sure that it will really happen so. He posted a tweet telling that tomorrow will be a big day. The Twitter community got quite excited and asked for sources. However, no source was provided.

Though now it sounds as a rumour, Facebook is not an alien in the crypto world. With its Libra (that was later rebranded to Diem) project it has already attracted the attention of the global crypto community. And Mike Novogratz, the CEO of Galaxy Digital, is one of those who see a lot of prospects for Facebook.

Earlier,  it became known that he had bought FB shares “because Facebook is going to come out with the Novi wallet sometime this quarter. All of a sudden you’re going to have 2.4 billion people connected to this crypto space, and it’s going to be a public equity way to participate in payments and in blockchain through their Diem project and their Novi wallet,” explained he.

The thought of having Facebook join the growing list of Bitcoin’s Institutional investors is bullish for the cryptocurrency. Just as Tesla’s foray into the Bitcoin ecosystem pushed the price of BTC to an ATH of $45,000 at the time, Facebook’s presence, if confirmed may also trigger a similar rally.

Other Expectations on Facebook

Besides the frenzy caused as fueled by the growing anticipation that Facebook will declare its BTC holdings, Wall Street also has expectations.  For the past four quarters, the social media giant has turned out profitable, coming out as one of the least impacted by the COVID-19 pandemic. Globally, people took to social media as the lockdown loom, earning Facebook a remarkable growth in its Daily Active Users. The firm posted a revenue of $86 billion for the 2020 fiscal year.

Of the bullish group of analysts is the Trefis team, with a belief FB’s growth will be consistent this quarter. The team’s position is that Facebook will outperform consensus estimates. Per Trefis projections, FB’s revenue will be about $25.6 billion, above the $23.5 billion consensus estimate. Earnings Per Share will come in at $3.43 per Trefis analysis. Lastly, the team noted that Facebook’s share price will eventually grow 20% to $360 per share. This is above its current value of $303 per share.

If FB reveals it holds Bitcoin, the imminent bullish spike in valuation will have a dual effect on both the company and the cryptocurrency.

Bitcoin News, Cryptocurrency news, News, Social Media
Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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