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Citing the massive volatility of Bitcoin and the crypto asset class, the Twitter CFO said that they are not willing to add Bitcoin to their balance sheet for now.
In his recent interview, Twitter CFO Ned Segal said that it doesn’t make sense for Twitter to invest in crypto as of now. Interestingly, the announcement comes at a time when more companies are looking to add cryptocurrencies to their balance sheets.
In an interview with Wall Street Journal, the Twitter CFO said that the company prefers investments that are less volatile. Bitcoin and cryptocurrencies in general are highly volatile asset classes. Over the last two days, the BTC price has corrected by 10% with its price slipping under $60,000 levels.
However, Ned Segal also acknowledged that the company needs to change its investment policy. “We [would]have to change our investment policy and choose to own assets that are more volatile,” he said.
As of the quarter ending September, Twitter reported that it has $3.47 billion in cash $3.47 billion in cash and cash equivalents. This is also a 75% jump from its $1.99 billion cash last year.
Amid the sharply rising market inflation, companies are also seeking partial exposure to cryptocurrencies. Automobile giant Tesla was the first to start this trend earlier this year. The electric carmaker added Bitcoin to its balance sheet while also profiting from the mega bull run earlier this year.
However, the Twitter CFO said that the company is not looking for an immediate change in its corporate cash policy. “There is a different set of decisions we would have to make if we were to own cryptocurrencies on our balance sheet,” he said.
It’s not that the Twitter CFO is negative about Bitcoin. Instead, he said that he’s excited about what BTC can do for its users.
Twitter and Its Relation with Bitcoin
Twitter founder Jack Dorsey has particularly turned into a Bitcoin evangelist. Earlier this year, Dorsey said that he also controls an entire node on the Bitcoin blockchain network.
Back in September, Twitter said that it will soon introduce a Bitcoin tip Jar Feature on its platform. This will serve as a way to support the content creators on the platform. In fact, Jack Dorsey is quite positive of adding this feature citing unsatiable demand for crypto-related payments. Speaking about it last month, Dorsey said:
“It [Bitcoin tipping] allows for much more speed. Both tipping subscriptions are new. These are products that we want to make sure that again, we started small and we figure out the right product that people want to stick with and they’re evaluating every single day. And then we’ll roll them out to more and more people and scale it and continue to iterate on the product”.
Although if Twitter is not keen on adding Bitcoin to its balance sheet, Dorsey’s other payments company Square has already purchased Bitcoin last year. In an October interview with WSJ, Square CFO Amrita Ahuja said:
“We’ve purchased bitcoin for our own balance sheet, which we believe not only shows that we have skin in the game but also could provide attractive financial benefits over the long term”.
Read more crypto-related news on Coinspeaker.