Driven by reports that Twitter (TWTR34) has been studying the possibility of adding bitcoin to its balance sheet, the company's stock soared to a new 52-week high of $ 73.18 on February 12. Before the increase, the shares were trading at just under $ 60 on 9 February. At the time of this writing, Twitter's market capitalization was $ 57.18 billion.
Elon Musk's Tesla Could Be Inspiration
Reports of Twitter's possible bitcoin acquisition follow Tesla's $ 1.5 billion investment announcement in BTC. The Tesla acquisition is fueling speculation that more large corporations may follow the electric carmaker by adding BTC to its reserves. Mastercard has already announced that it will support cryptocurrencies in its payment network.
In addition, as Twitter shares responded positively to comments from a company executive, CEO Jack Dorsey was announcing the creation of a bitcoin development fund. In a tweet, Dorsey said that he and hip hop artist Jay Z are "giving 500 BTC for a new donation called Trust to fund bitcoin development". According to Dorsey, the work of this entity will be “initially focused on teams in Africa and India”.
Increase in shares is inevitable
In the meantime, an analyst suggests that the rise in the value of Twitter shares is not surprising. Vladislav Utushkin, the CEO of TTM Bank, told News.Bitcoin.com that it is only a matter of time before "other companies follow him". He explains that “investors are attracted by the company's approach to new instruments and highly profitable investments”.
According to Utushkin, bitcoin is one of those investments, and because of that, the recent stock rises. The CEO explains:
“All investors who bought bitcoin previously are now making a profit. The investment in bitcoin has brought Microstrategy a return of almost 300%. Tesla's return on investment in the first 24 hours (after buying BTC) exceeded 20%. It is clear that, after Tesla, the decisions of other companies will be perceived positively, the shares react with the growth to the potential growth of the capitalization. ”
Meanwhile, at the close of trading on February 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 opinions in the comments section below.