Ned Segal claims social media prefers to invest in less volatile assets
Twitter CFO Ned Segal believes that investing the company's cash reserves in cryptocurrencies does not make sense at the moment. Segal spoke about this in an interview with The Wall Street Journal . According to the financial director of the social network, the company prefers to invest in less volatile assets, for example, in securities.
As of the end of September, the social network had $ 3.47 billion in cash and cash equivalents, as well as $ 3.94 billion in short-term investments. Twitter CEO Jack Dorsey is also the founder of Square, which develops payment systems. In early May, Square published its financial report for the first quarter of 2021, according to which the income from investments in bitcoin was $ 3.5 billion.The last time Square invested in bitcoin was in February 2021. Then the company bought a cryptocurrency for $ 170 million at an average price of $ 51 thousand. Prior to that, it bought bitcoin in October 2020. Cryptocurrency now accounts for about 5% of Square's total reserves.
At the end of November, it became known that Twitter will create a new team that will work with cryptocurrencies, blockchain and decentralized applications.
In September, the social network announced the ability to connect a cryptocurrency wallet to an account and import non-fungible tokens (NFT) to use as a profile picture. NFT tokens on the profile image will be marked with a special icon that will confirm the authenticity of the token.
Also in September, Twitter added a feature that allows Bitcoin donations to be sent. Transfers are carried out using the Lighting Network (allows you to send bitcoins faster and cheaper). To send and receive cryptocurrency, users of social networks need to connect a Lighting wallet or bind their bitcoin address.