Ned Segal, the Chief Financial Officer (CFO) at Twitter, opined in a Monday interview with the Wall Street Journal CFO journal forum that investing in cryptocurrencies “doesn’t make sense right now.”
The CFO, who has led Twitter’s finance unit for nearly four years, points to the inherently volatile nature of the crypto assets as a reason it should not be added to the company’s corporate investment.
No Specific Accounting Rules
Segal, like others in the finance field, has claimed that cryptocurrencies do not possess specific accounting rules, thus making them complicated assets to handle.
According to the finance officer, for the company to start investing in bitcoin, it would require changing their investment policy to suit the asset’s volatility.
“We [would] have to change our investment policy and choose to own assets that are more volatile. The company prefers to hold less volatile assets such as securities on its balance sheet. There is a different set of decisions we would have to make if we were to own cryptocurrencies on our balance sheet,” he explained.
While Twitter’s CFO does not think it is right to invest in crypto at the moment, the company’s founder Jack Dorsey is a Bitcoin believer and the company is currently working on a number of crypto-related products.
Twitter Bullish on Crypto
Seeing potential opportunities to increase revenue within the crypto space, the social media platform recently took a step towards integrating crypto, decentralized finance (Defi), and decentralized applications (Dapp) within its ecosystem.
Additionally, Twitter chose not to be left out of the growing NFT market when it launched seven digital collectibles on Rarible.
In September, the social media platform reported over $3 billion in cash and cash equivalent as opposed to a little less than $2 billion it recorded last year. Twitter still records a $3,94 billion in short-term investments.