Spurred on by reports that Twitter was looking into the possibility of adding Bitcoin to its balance sheet, the company’s stock rose to a new 52-week high of $ 73.18 on February 12. Prior to the surge, the stock was trading at just under $ 60 on February 9th. At the time of writing, Twitter’s market cap was $ 57.20 billion.
Telsa’s BTC moves an inspiration
Reports of Twitter’s potential Bitcoin acquisition follow Tesla’s announcement that it has acquired $ 1.5 billion in BTC. The Tesla acquisition spurs speculation that more large corporations might follow the electric automaker to add BTC to their reserves. Mastercard has already announced that it will support cryptocurrencies in its payment network.
With Twitter stock responding positively to comments from a company executive, CEO Jack Dorsey announced the creation of a Bitcoin development trust. In a tweet, Dorsey, a Bitcoin supporter, says he and hip-hop artist Jay Z are “giving 500 BTC to a new foundation called Trust to fund Bitcoin development.” According to Dorsey, the company’s work will “initially focus on teams in Africa and India.”
Stick spike inevitable
Meanwhile, one analyst suggests that Twitter’s stock appreciation is hardly surprising. Vladislav Utushkin, CEO of TTM Bank, told news.Bitcoin.com that it is only a matter of time before “other companies follow suit”. He explains that “Investors are drawn to the company’s approach to new, highly profitable instruments and investments.”
Bitcoin is one such investment, according to Utushkin, hence the recent moves in the stock. The CEO explains:
All investors who previously bought Bitcoin are now making a profit. Investing in Bitcoin brought Microstrategy a return of almost 300%. Tesla’s ROI in the first 24 hours (after buying BTC) was over 20%. Of course, according to Tesla, decisions of other companies are perceived positively, stocks react to potential capitalization growth with growth.
At the close of trading on February 12, the stock had retreated to $ 71.90.
Do you think Twitter will add BTC to its balance sheet this year? You can share your views in the comments section below.
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