Twitter Financial director Ned Segal told the Wall Street Journal on Monday (November 16) that the company is unlikely to invest its cash in cryptocurrency anytime soon, adding that “that doesn’t make sense at the moment.”
At the end of September, Twitter had $ 3.47 billion in cash and cash equivalents, up from $ 1.99 billion in the same period a year earlier. The company also has short-term investments of $ 3.94 billion.
“We [would] have to change our investment policy and choose to hold more volatile assets, âSegal told the WSJ, noting that Twitter would prefer to invest in securities and other less volatile assets.
Segal’s concerns are common in the business landscape, with many CFOs or CFOs arguing that digital currencies are too volatile to be considered viable investment options. Many large U.S. companies have urged the Financial Accounting Standards Board to write rules on how to deal with crypto assets, according to the WSJ report.
Segal said earlier this year that Twitter had researched the use of bitcoin, but added on Monday that “there is a different set of decisions we should make if we were to own cryptocurrencies on our balance sheet.”
Twitter’s subscription services, on the other hand, “will be a predictable new open space for us to generate additional revenue,” Segal said. Twitter Blue provides users with additional features and Super Follows allows users to charge subscribers and provide access to additional content.
Related: Twitter iOS Tip Jar for Creators Suggests Upcoming Bitcoin Tips
Twitter also launched an iOS Tip Jar for content creators in September, suggesting the company will soon be accepting bitcoin tips. Twitter gave its users the option to add Bandcamp, Cash App, Patreon, PayPal, and Venmo links to their profiles when the Tip Jar beta launched in May. Then he offered a Tip Jar icon next to the Follow button to select which accounts to activate for tips.
Twitter launched a range of non-fungible tokens (NFTs) in March after Twitter co-founder and CEO Jack Dorsey sold his first tweet for $ 2.5 million. Dorsey is bullish on the cryptocurrency, but he insisted SEC regulations regarding their use.