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Twitter Jumps as CEO Dorsey Touts Bitcoin as 'Big Part' of Future

Twitter shares flit higher after the company posts better-than-expected earnings and CEO Jack Dorsey confirms that Bitcoin will be a 'big part' of the company’s future.

Twitter  (TWTR) - Get Twitter, Inc. Report shares jumped Friday after the company posted better-than-expected quarterly earnings and CEO Jack Dorsey confirmed to investors that Bitcoin will be a “big part” of the company’s future.

Twitter shares were up more than 5% in premarket trading after the company posted earnings that were well ahead of analysts' forecasts, and also gave a rosy third-quarter sales outlook, saying it expects revenue of between $1.22 billion and $1.3 billion, ahead of current forecasts of $1.17 billion.

Dorsey also confirmed that Bitcoin would be a big part of the company’s future plans to expand into decentralized finance and payments. Bitcoin and other cryptocurrencies also traded higher, with Bitcoin up 1.3% at $32,313.

“If the Internet has a native currency, a global currency, we are able to move so much faster with products such as Super Follows, Commerce, Subscriptions, Tip Jar, and we can reach every single person on the planet because of that instead of going down a market-by-market-by-market approach,” Dorsey said.

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Dorsey's comments followed an announcement last week from Square  (SQ) - Get Square, Inc. Class A Report, the payments services company of which Dorsey also is co-founder and CEO, that it is creating a new business focused on “decentralized financial services” using Bitcoin. 

That was followed up by comments this past Wednesday about Bitcoin potentially creating “world peace,” a view Dorsey shared during a “The B Word” webinar with Tesla  (TSLA) - Get Tesla Inc Report CEO Elon Musk and ARK Invest  (ARKF) - Get ARK Fintech Innovation ETF Report CEO Cathie Wood.

Earlier this year, Dorsey launched a $23.6 million Bitcoin fund with Jay Z and acquired a majority stake in Jay-Z’s TIDAL music service with an eye toward how blockchain technologies and cryptocurrencies could change the music business.

At last check, shares of Twitter were up 1.08% at $70.23. The stock has gained 27.58% since the start of the year.