Investing In Crypto 'Doesn't Make Sense Right Now': Twitter CFO
Twitter is not planning to invest any of its assets into cryptocurrency — at least for now.
In an interview with the Wall Street Journal, Chief Financial Officer Ned Segal said that the social media platform prefers investments that are much less volatile.
Putting its money toward something like Bitcoin, which fell 6.2% in the last 24 hours, does not "make sense right now."
"We [would] have to change our investment policy and choose to own assets that are more volatile,” Segal said, giving a nod toward balance sheet securities.
As of September, Twitter reported that it has $3.47 billion in cash and cash equivalents compared to $1.99 billion in the previous fiscal year.
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Last week, the company announced that it was putting together a team called Twitter Crypto that would start brainstorming ways for users to accept payment in cryptocurriencies and earn crypto-related money through the site.
But that, Segal said, does not mean that Twitter's finance department is considering an immediate change to its own corporate cash policies.
"There is a different set of decisions we would have to make if we were to own cryptocurrencies on our balance sheet," he said.
This more conservative investing strategy is in contrast to Tesla (TSLA) and Square (SQ), two high-profile companies that recently reported holding crypto assets.
"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 CFO Amrita Ahuja told the WSJ in an October interview.
At the end of trading on Tuesday, TWTR stock was down 1.68% to $52.06.
