Twitter Inc (NYSE: TWTR), through its Chief Financial Officer, Ned Segal, has stated that it currently makes little sense to invest in cryptocurrency. According to Segal, the company would need to change its policies and select more volatile assets to join crypto. Segal says out that the company prefers less volatile investments like securities.
Twitter will not change its policy despite creating Twitter Crypto
The company previously announced that it would start Twitter Crypto, a team to help creators accept crypto as payment and make money. The team would also help creators implement blockchain technology in n other ways. However, while the company backs these moves, it will not change its policies on cash.
Twitter had a $3.47 billion cash and cash equivalents in September, a $1.99 billion increase from 2020. It also made short-term investments of $3.94 billion.
Like many other companies, Segal is concerned about the volatility of digital assets, which makes it inappropriate for investments. Furthermore, there are no accounting regulations for cryptocurrency. As a result, several companies have requested the Financial Accounting Standards Board to develop rules regarding crypto assets.
Despite uncertainty regarding crypto, Square Inc (NYSE: SQ), owned by Twitter CEO Jack Dorsey, and Tesla Inc (NASDAQ: TSLA) own crypto assets. Amrita Ahuja, the CFO of Square, admitted that the company had bought Bitcoin, which indicated that it had good long-term financial benefits.
Segal adds that the company has looked into Bitcoin, and it would have to make different decisions if it added crypto assets to its balance sheet.
Twitter launches subscription services
The company recently launched subscription services which it believes will bring many benefits. The predictable space will give them another way to increase revenue. The services include Super Follows for charging followers and giving them additional content, and Twitter Blue that offers users extra features.
Twitter Blue subscription will cost $2.99 monthly. The company will offer more subscriptions at different prices in the future. Twitter lists these services under data licenses and other revenue. It generated $143 million for the last quarter. Most lf the company’s income comes from ads.
The company also announced that it planned to sell AppLovin Corp. for $1.05 billion. Meanwhile, Twitter bought Threader, an app that shares threads.
