Twitter CFO Turns Down Crypto Investing

• Twitter CFO Ned Segal has stated that investing in cryptocurrencies “doesn’t make sense right now,” according to the Wall Street Journal.

• Segal cited the volatility issues regarding the asset class, saying that “Twitter would have to change its investment policy to hold more-volatile assets on its balance sheet. The company prefers to hold less-volatile assets such as securities.”

• Part of Segal’s decision could be due to the fact that Twitter is a publicly traded company, and there is still a large amount of vagueness regarding the regulatory status of cryptocurrency in the U.S. Holding a volatile asset that has yet to be given regulatory clarity could be detrimental to a publicly traded company and its shareholders.

• While officials from Twitter have clearly stated their case for avoiding holding cryptocurrency in their company reserves, the social media platform continues to support the blossoming industry by developing a Bitcoin tipping feature and a built-in NFT authentication system.

• This declaration is seen as somewhat of a surprise from the company, as its CEO Jack Dorsey is a well known proponent of cryptocurrency and Bitcoin. Twitter has also recently launched a specialized team focusing solely on cryptocurrency and the possibilities of decentralized social media.