Hassan Maishera
Buying Crypto Assets Doesn’t Make Sense Now
Twitter CFO Ned Segal has told the Wall Street Journal that buying cryptocurrencies doesn’t make sense at the moment. The social media giant has been a big proponent within the crypto space in recent years, but the company is yet to hold cryptocurrencies on its balance sheet.
Segal said, “We [would] have to change our investment policy and choose to own assets that are more volatile.” Several companies have indicated the desire to buy and hold cryptocurrencies such as Bitcoin. However, the volatility of cryptocurrencies is one of the main reasons why some companies are yet to buy them.
Although Twitter is yet to purchase cryptocurrencies, Square, its sister company founded by Jack Dorsey, already holds Bitcoin in its balance sheets. In an interview last month, Square CFO Amrita Ahuja said, “We’ve purchased bitcoin for our own balance sheet, which we believe not only shows that we have skin in the game…but also could provide attractive financial benefits over the long term.”
Square is not the only corporate entity that holds bitcoins in its balance sheets. Tesla, MicroStrategy and SpaceX are some of the other leading companies that are holding bitcoins at the moment.
MicroStrategy remains the corporate entity with the largest Bitcoin holdings in the world. The company has invested nearly $4 billion in bitcoins over the past few months, and its BTC holdings briefly surpassed $7 billion earlier this month. MicroStrategy remains bullish about Bitcoin and intends to buy more of the coins over time.
Bitcoin’s price dropped below the $60k earlier today after the Chinese National Development and Reform Commission spokesperson Meng Wei said the government agency is set to launch a full-scale clampdown on cryptocurrency mining by focusing on commercial mining and the role of state-owned businesses in the industry.
