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Cryptocurrency investment makes no sense, says Twitter CFO

Updated: Aug 31, 2024
Published: Nov 16, 2021
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In his recent interview with the Wall Street Journal, Chief Financial Officer of Twitter Ned Segal said that investment in any cryptocurrency "doesn't make sense right now." The statement came in at a time when the Bitcoin and altcoins crashed, turning the entire market red. 

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Cryptocurrency is volatile

In his statement, Segal said that Twitter would like to hold less volatile assets as securities on its balance sheet. The extreme volatility of the asset deters investors from entering the cryptocurrency industry. 
"We [would] have to change our investment policy and choose to own assets that are more volatile," said the CFO. 
While Twitter CEO is in active support of Bitcoin and other cryptocurrencies, the remarks of the CFO say otherwise. At the end of September, Twitter reported $3.47 billion in cash and cash equivalents. This is, however, a $1.99 billion surge during the prior-year period, alongside short-term investments of $3.94 billion.

The volatile nature of any cryptocurrency is what makes them unfit for institutional investors. Furthermore, the lack of accounting rules and legal exposure to cryptocurrencies is another issue that CFOs fear. However, there are some firms that openly admit that they hold cryptocurrencies, including Elon Musk's Tesla and Jack Dorsey's Square Inc.

Twitter investing crypto

Jack Dorsey's plans of integrating Twitter and cryptocurrency technology came to fruition with the TipJar and Twitter NFTs. Furthermore, the firm has appointed a team for investigating DeFi applications, blockchain technology, and blockchain tech. The plans were revealed in a recent tweet by Interchain Foundation council member Tess Rinearson. Rinearson will be leading the Twitter team and exploring the possibilities for the network in the field. 
"I'm thrilled to share that I've joined Twitter, to lead a new team focused on crypto, blockchains, and other decentralized technologies—including and going beyond cryptocurrencies," said Rinearson. 
Furthermore, under the "Twitter Crypto" initiative, the social media platform aims to become the "center of excellence" for all things blockchain at Twitter.

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