By Shelly Melancon (Switzerland)
Twitter’s Chief Financial Officer, Ned Segal, has disclosed that the social network isn’t interested in investing any of its corporate treasury in Bitcoin. While speaking with the Wall Street Journal on Wednesday, the Twitter executive said that it doesn’t make any sense at the moment to invest in the flagship cryptocurrency.
This statement got lots of tongues wagging, considering that the CEO of Twitter, Jack Dorsey, is a firm advocate of cryptocurrencies, particularly Bitcoin. Irrespective of that, Segal maintains he won’t risk investing corporate dollars into the digital asset and has no intention of doing that anytime soon.
Reasons for Segal’s Firm Stance
Twitter’s CFO said that the reason for his firm stance on investing in Bitcoin is due to the asset’s high volatility rate. He added that the company likes to store assets, such as securities because they aren’t as volatile as BTC. The fluctuations of BTC prices are wild, and could change in a matter of minutes, rising and falling as much as 10% within 24 hours.
Segal revealed that for the company to add Bitcoin to its balance sheet, it would have to alter its investment policy, which doesn’t make sense. He said that this price fluctuation is the sole reason the company preferred to store securities instead of volatile assets like Bitcoin.
Also read:Square Is Reaping Huge Benefits Off its BTC Investment
Meanwhile, Jack Dorsey’s other company Square, invested $220M of its corporate treasury in Bitcoin in the first half of 2020. So far, the payment firm is doing very well. As at the time of the investment, BTC ranged between $10k – $30k compared to the current price of below $60k at the time of this publication.
Square has already invested so much in BTC in a less desirable fashion. It also invested in Cash App, a custodial wallet that allows its users to hold and transact Bitcoin. The various investments yielded handsome rewards, as BTC transaction fees generated close to $1.8B in Q3 of 2021.
Twitter may not be investing any of its corporate treasury in Bitcoin, but the social media giant is investing in crypto on a wider scope. In September, Jack Dorsey disclosed a tool that allows users tip fellow Twitter users and another that enables NFT verification. The CEO once said that it was essential to Twitter and its shareholders that the company continues to look at the industry and invest in it more.
He has a vision of steering the company to crypto adoption. To that effect, the tech company hired a crypto expert Tess Rinearson last week, to form and lead a new crypto team to develop an effective strategy for digital asset integration into Twitter’s activities. It was reported that Rinearson would be working with Bluesky, an open-source decentralized protocol that can host any social media platform to further drive Dorsey’s Web 3.0 goals.
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