Twitter CEO Jack Dorsey confirmed to investors that bitcoin will be a “big part” of the company’s future as he sees opportunities to integrate the cryptocurrency into existing Twitter products and services, including trading, subscriptions and other new additions. like the Twitter tip jar and Super follows.
Dorsey has been a staunch supporter of bitcoin for years, but how it would be put into action on the Twitter platform had not yet been detailed. However, Dorsey has often touted the cryptocurrency publicly, proverb it reminds him of the “early days of the internet” and that there was nothing more important in his life to work on.
More recently, Dorsey launched a $23.6 million bitcoin fund with Jay Z and announced plan to run his other business Square in the decentralized financial services market through bitcoin. Square also this year purchased a majority stake in Jay-Z’s TIDAL music service with a eye toward how blockchain technologies and cryptocurrencies can change the music business.
Today, Dorsey also named bitcoin one of the top three trends for the future of Twitter, along with AI and decentralization — the latter that Twitter is pursuing through his “Bluesky” initiative.
He praised bitcoin to investors on Twitter’s second-quarter earnings call, saying it could help the company accelerate in terms of its product expansions, while explaining it was the “best candidate” to become the internet’s “native currency”. (By the way, Square’s $50 million worth of bitcoin purchased in 2020 was worth it) $253 million by February 2021, and the bought $170 million more earlier this year.)
“If the internet has its own currency, a global currency, we can trade so much faster with products like Super Follows, Commerce, Subscriptions, Tip Jar, and because of that we can reach every person on the planet instead of a market-by-market- to take a market approach,” Dorsey explained. “I think this is a big part of our future. I think there’s a lot of innovation over money, especially because we’re thinking about decentralizing social media more and giving more economic incentives. So I think it’s hugely important to Twitter and to Twitter shareholders that we continue to look at the space and invest aggressively in it,” he added.
A Twitter representative confirmed that this is the first time Dorsey has spoken publicly about how Twitter could integrate bitcoin into its product range.
Dorsey also pointed out that Twitter would not be alone in pursuing a crypto strategy, noting that Facebook was backing the digital currency. diem.
“There is a clear need and appreciation for it. And I think an open standard native to the internet is the right way to go, so my focus and our focus will ultimately be on bitcoin,” he noted.
All in all, Twitter delivered strong gains in a pandemic rebound, leading the company to record its fastest revenue growth since 2014, according to CNBC, which drove Twitter shares 9% higher in extended trading. The company had second-quarter revenue of $1.19 billion, versus the $1.07 billion expected by Wall Street, a majority ($1.05 billion) from its advertising business. It also saw earnings per share of 20 cents against the projected 7 cents.
However, revenue generating daily active users (mDAUs) — Twitter’s own invented metric intended to boost the often flat monthly user growth rate – were just 206 million, an 11% year-over-year increase, while analysts expected 206.2 million. The company attributes the decline to a slower news cycle and the end of shelter in many US communities, which may have impacted Twitter usage during the quarter.