Following Tesla’s $1.5 billion investment in Bitcoin, Twitter may be the next company to add the cryptocurrency to its balance sheet. This was revealed by the company’s CFO, Ned Segal who said the company is considering adding Bitcoin to its balance sheet as well as use it to pay its staff.
Speaking on CNBC, Segal said:
“We’ve done a lot of the upfront thinking to consider how we might pay employees should they ask to be paid in Bitcoin, how we might pay a vendor if they asked to be paid in BTC and whether we need to have BTC on our balance sheet.”
This is a potentially major development that could impact the cryptocurrency industry as a whole in the near future. Interestingly, Twitter is not the first to take such a step and may not be the last in 2021.
Twitter Follows Tesla
Two days ago, the leading electric car manufacturer in the U.S, Tesla bought Bitcoin worth $1.5 billion. This created a lot of interest in cryptocurrency in the last 48 hours as Elon Musk the CEO of Tesla is the richest man on earth. Although he himself claims to hold no Bitcoin except that gifted to him by a friend, the crypto community has since anticipated that both he and his company would buy Bitcoin.
Since the expectation came true 2 days ago, Twitter is the next big company that has indicated an interest in buying Bitcoin. Its sister company, Square already has a lot to do with Bitcoin, not just because it has an arm, Square Crypto which is dedicated to Bitcoin development, but it also owns Cash App, a peer-to-peer payment app that allows sending and receiving of BTC in the U.S.
This makes Twitter’s interest in BTC unsurprising especially because its CEO Jack Dorsey has been very supportive of the digital asset. The investment from Tesla is likely to create confidence in Bitcoin and attract more investments such as this.
Bitcoin Could Go Higher
Following Tesla’s investment, Bitcoin regained momentum and rose to many new price levels. Yesterday, the price crossed $48,000 for the first time though it has retraced now. However, the rising interest that followed the investment announcement may hold the potential to push it back up soon. The price now hovers around $44,000 which is a support area from which it could bounce off if the bull market does not lose steam.
If Twitter eventually buys Bitcoin, a similar effect could follow and Bitcoin’s momentum may greatly increase and new price levels may be reached once again. Going forward may become usual for big companies. Recently, Fast Money anchor on CNBC, Jim Cramer said it has become almost irresponsible for any organization to not own Bitcoin on its balance sheet.