According to the chief financial officer of the tech firm Ned Segal, Twitter may be the next major company to acquire Bitcoin.
Ned Segal, who has worked as Twitter’s CFO since 2017, referred to concerns about how Twitter will relate to Tesla’s latest $1.5 billion Bitcoin (BTC) investment this week in an interview on CNBC’s Squawk Box today. Segal said the tech giant was closely monitoring other firms, and debated possibly applying the crypto commodity to its own books or using it for the salaries of Twitter employees.
“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 should they ask to be paid in Bitcoin, and whether we need to have Bitcoin on our balance sheet,” said Segal.
Although the CFO said Twitter has not “made any changes yet,” he added that if enough people are involved in conducting BTC transactions with the tech firm, the tipping point could come.
“When we hedge currencies, when we do business in another country, when we think about all the different exposures that we have, we’re really trying to match our assets and our liabilities, and we take the same approach to Bitcoin that we do to all the other types of risks that we have.”
Twitter shares has risen more than 11% since the tech firm’s most recent earnings report yesterday.
Twitter is a fraction of the value of a company like Tesla, whose market valuation has grown to $780 billion this week, with a market capitalization of more than $51 billion. The price of Bitcoin hit a new all-time high of $48,200 after the announcement that Tesla bought $1.5 billion of Bitcoin and was considering accepting it for payments. It could help drive the price even higher if other multi-billion dollar companies reported similar acquisitions or adoption strategies.
In response to Segal’s interview, “Every CFO is going to be asked now that Tesla made the move,” Bitcoin bull Anthony “Pomp” Pompliano said.
Nathan Cox, CIO of Two Prime, an investment firm specializing in digital assets, said, “These are just the early innings of corporate adoption, as digital currencies are beginning to play a larger role in robust balance sheet management,” He also added:
“We’ve been having many conversations with corporates to create clear Bitcoin strategies for their treasury reserves as a hedge against inflation. Announcements like these from corporate giants serve as a signal of what’s to come.”
Jack Dorsey, Twitter CEO, is a renowned Bitcoin advocate, having set in a blockchain trading and selling service at Square, which he also heads. He also founded Square Crypto, a small team devoted to promoting the development of Bitcoin.