- Twitter stocks buoyed after reports of the company mulling to integrate Bitcoin to its reserves.
- Move ostensibly inspired by a similar stance taken by Tesla a few days ago.
- New Bitcoin investments to be focussed in the regions of Africa and India.
Twitter seems to be the latest in the list of companies that follow in Tesla’s footsteps to invest in Bitcoin. Certain reports suggest that Twitter is contemplating on adding BTC to their cash reserves. If true, it may spell good news for Twitter and Bitcoin investors.
Surge in Twitter’s stocks
Early indications of Twitter’s new move led to a surge in the stock price of Twitter. From about $60.00 by the end of Feb 9, Twitter’s stocks had leaped to an all-year high of $73.18 on Feb 12 before settling at a high of $71.90 by market close. This gain is presumably due to Twitter’s new investment portfolio. Bitcoin, however, posted a minor decline in its stock price of 0.79% even though it reached an all-day high of $48,189.22. However, almost all the other cryptocurrencies posted strong gains throughout the day.
Impact of Tesla’s decision
It is no secret that Tesla’s earlier move to infuse $1.5 billion into Bitcoin played a major role in Twitter’s current stance. If reports are to be believed, Twitter would become the second major company to invest in Bitcoin stocks which would lead to an overall positive outlook for the microblogging site as well as the cryptocurrency giant. This would probably lead to a chain reaction in the market where several companies will be eager to add Bitcoin and other cryptocurrencies to their cash reserves.
New trust to be developed?
Twitter CEO Jack Dorsey, an ardent supporter of Bitcoin himself, stated in a tweet that hip-hop star Jay Z and himself plan to invest 500 BTC to a newly created endowment to fund Bitcoin expansion. Dorsey clarified that it would be completely autonomous and not subject to Twitter’s oversight. Dorsey also remarked that the entity’s work will initially be focused on the regions of Africa and India. This may be due to the fact that governments in both regions, especially India, are on the verge of bringing about laws to regulate cryptos such as Bitcoin. This, combined with a huge interest among the citizens, poses a huge market potential and would lend an impetus to crypto’s expansion in these nations.
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