Driven by reports that Twitter has studied the possibility of adding bitcoin to its balance sheet, the company’s share rose to a new 52-week high of $ 73.18 on February 12th. Before the boom, the stock traded at just under $ 60 on February 9th. At the time of writing, Twitter’s market capitalization was $ 57.20 billion.
Telsa is BTC Move an Inspiration
Reports of Twitter’s possible bitcoin acquisition follow Tesla’s announcement that it has acquired $ 1.5 billion in BTC. The acquisition of Tesla raises speculation that more large companies could follow the electric carmaker to add BTC to their reserves. Mastercard has already announced that it will support cryptocurrencies in its payment network.
As the Twitter share responded positively to comments by one CEO, Jack Dorsey, CEO announce the creation of a bitcoin development trust. In a tweet, bitcoin advocate Dorsey says he and hip-hop artist Jay Z are giving ‘500 BTC to a new donation called Trust to fund bitcoin development.’ According to Dorsey, the work of this entity will ‘initially be focused on teams in Africa and India’.
Stock Spike inevitable
Meanwhile, one analyst suggests that the increase in the value of the Twitter share is almost not surprising. TTM Bank CEO Vladislav Utushkin tells news.Bitcoin.com that it’s only a matter of time before ‘other companies follow’. He explains that “investors are attracted to the approach to new, highly profitable instruments and investments.”
According to Utushkin, bitcoin is such an investment, hence the recent movements of the stock. The CEO explains:
All investors who used to buy bitcoin are now making a profit. The investment in bitcoin has given Microstrategy a return of almost 300%. Tesla’s return on investment in the first 24 hours (after buying BTC) exceeded 20%. Of course, decisions of other companies after Tesla will be viewed positively, and equities will respond with growth to potential growth in capitalization.
Meanwhile, the stock retreated to $ 71.90 at the close of trading on February 12.
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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