Buoyed by reports that Twitter has been studying the possibility of adding bitcoin to its balance sheet, the company’s stock rose to a new 52-week high of $ 73.18 on Feb. 12. February 9th. At the time of writing, Twitter’s market cap was $ 57.20 billion.
Telsa’s BTC Move an Inspiration
Reports of the possible takeover of bitcoin by Twitter follow Tesla’s announcement that it had acquired BTC worth $ 1.5 billion. The Tesla acquisition fuels speculation that more large companies could follow the electric carmaker by adding BTC to their reserves. Mastercard has already announced that it will support cryptocurrencies in its payment network.
As the Twitter stock responded positively to comments from a company executive, so was CEO Jack Dorsey to announce creating a bitcoin development confidence. In a tweet, bitcoin supporter Dorsey said he and hip-hop artist Jay Z are “giving 500 BTC to a new endowment called Trust to fund bitcoin development.” According to Dorsey, the entity’s work will “primarily target teams in Africa and India.”
Stock peak inevitable
An analyst, meanwhile, suggests that the spike in Twitter stock value is not surprising. Vladislav Utushkin, the CEO of TTM Bank, tells news.Bitcoin.com that it is only a matter of time before “other companies follow.” He explains that “investors are attracted by the company’s approach to new, highly profitable instruments and investments.”
According to Utushkin, bitcoin is such an investment, hence the stock’s recent moves. The CEO explains:
All investors who previously bought bitcoin are now making a profit. The investment in bitcoin brought Microstrategy a return of almost 300%. Tesla’s return on investment in the first 24 hours (after purchasing BTC) was more than 20%. Of course, after Tesla decisions made by other companies are judged positively, stocks will respond with growth to potential growth in capitalization.
Meanwhile, by the end of trading on Feb. 12, the stock had fallen to $ 71.90.
Do you think Twitter will add BTC to its balance sheet this year? You can share your thoughts in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons