Twitter could be the next major company to buy Bitcoin, according to the tech company’s CFO.
In an interview with Squawk Box on CNBC today, Ned Segal, who has held the CFO of Twitter since 2017, answered questions about how Twitter has interacted with Tesla’s recent investment in Bitcoin (BTC) of $ 1.5 billion this week. Segal said the tech company is keeping a close eye on other companies, and has discussed adding crypto assets to its own books or using it for Twitter employee salaries.
“We did a lot of pre-thinking looking at how we would pay employees if they asked to be paid in bitcoin, how we could pay the seller if they asked to be paid in bitcoin, and whether we needed to have bitcoin,” Segal said.
“We did a lot of thinking up front to look at how employees will be paid if they are asked to be paid # Bitcoin-How do we pay the seller if he asks that they be paid #btc And whether we need to #btc In our balance sheet Embed a Tweet TWTR Dollars. pic.twitter.com/KjIgnqDmYC
Squawk Fund (SquawkCNBC) February 10, 2021
Although the CFO said Twitter has not “made any changes yet,” he added that the turning point could come if enough people are interested in making BTC transactions with the tech company.
“When we hedge currencies, when we do business in another country, when we think about all the different exposures that we have, we are really trying to match our assets and liabilities, and we follow the same approach to Bitcoin that we do for all kinds of other risks we face.”
With a market capitalization of over $ 51 billion, Twitter is a fraction of the value of a company like Tesla, whose market cap rose to $ 780 billion this week. After the news, Tesla bought $ 1.5 billion of Bitcoin and was considering accepting the payments, the price of Bitcoin reached an all-time high of $ 48,200. If other billion-dollar companies advertise similar purchases or certification schemes, that could help push the price higher.
“Every CFO will be asked now that Tesla has taken this step.” He said Bitcoin bull Anthony Pompiliano “Pompigliano” in response to Segal’s interview.
“This is just the beginning of corporate adoption, as cryptocurrencies are starting to play a greater role in robust balance sheet management,” said Nathan Cox, chief information officer at Two Prime, an investment firm specializing in digital assets. he added:
“We’ve had many conversations with companies to create clear Bitcoin strategies for their treasury reserves as a hedge against inflation. Advertisements like this from corporate giants are a signal of what’s to come.”
Twitter shares are up more than 11% since the tech company’s last earnings report yesterday. However, Bitcoin’s price fell 5% overnight, reaching $ 44,880 at time of publication.