Buoyed by reports that Twitter has been studying the possibility of adding bitcoin to its balance sheet, the companyâ€™s stock surged to a new 52-week high of $73.18 on Feb. 12. Before the surge, the stock had been trading at just under $60 on Feb. 9. At the time of writing, Twitterâ€™s market capitalization stood at $57.20 billion.
Telsaâ€™s BTC Move an Inspiration
Reports of Twitterâ€™s possible bitcoin acquisition follow Teslaâ€™s announcement that it had acquired BTC worth $1.5 billion. Teslaâ€™s acquisition is fueling speculation that more large corporations may follow the electric carmaker in adding BTC to their reserves. Already, Mastercard has announced it will be supporting cryptocurrencies in its payments network.
Also, as the Twitter stock responded positively to comments by one company executive, CEO Jack Dorsey was announcing the creation of a bitcoin development trust. In a tweet, Dorsey, a supporter of bitcoin, says he and hip hop artist Jay Z are â€œgiving 500 BTC to a new endowment named Trust to fund bitcoin development.â€ According to Dorsey, the work of this entity will â€œinitially be focused on teams in Africa & India.â€
Stock Spike Inevitable
In the meantime, one analyst suggests that the spike in the value of the Twitter stock is hardly surprising. Vladislav Utushkin, the CEO at TTM Bank, tells news.Bitcoin.com that it is only a matter of time before â€œother companies follow.â€ He explains that â€œinvestors are attracted by the companyâ€™s approach to new, highly profitable instruments and investments.â€
According to Utushkin, bitcoin is one such investment hence the stockâ€™s recent movements. The CEO explains:
Meanwhile, at the close of trading on Feb. 12, the stock had retreated to $71.90.
Do you think that Twitter will add BTC to its balance sheet this year? You can share your views in the comments section below.