Jack Dorsey says bitcoin will be a big part of Twitter’s future
By Kathi on Jul 23, 2021 | 03:33 AM IST
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 commerce, subscriptions and
other new additions like the Twitter Tip Jar and Super Follows.
Dorsey has been a staunch bitcoin advocate for years, but
how it would be put into action on Twitter’s platform had not yet been spelled
out in detail. However, Dorsey has often publicly touted the cryptocurrency,
saying it reminds him of the “early days of the internet” and that there wasn’t
“anything more important” in his lifetime for him to work on.
More recently, Dorsey launched a $23.6 million bitcoin fund
with Jay Z and announced plans to lead his other company Square into
the decentralized financial services market by way of bitcoin. Square also this
year acquired a majority stake in Jay-Z’s TIDAL music service with an eye
toward how blockchain technologies and cryptocurrencies could change the music
business.
Today, Dorsey also dubbed bitcoin one of three key trends
for Twitter’s future, along with AI and decentralization — the latter which
Twitter is pursuing through its “Bluesky” initiative.
He touted bitcoin to investors on Twitter’s second quarter
earnings call, saying it could help the company move faster in terms of its
product expansions, while explaining that it was the “best candidate” to become
the “native currency” of the internet. (Incidentally, Square’s $50 million in
bitcoin purchased in 2020 was worth $253 million by February 2021, and it
purchased $170 million more earlier this year.)
“If the internet has a native currency, a global currency,
we are able to able to move so much faster with products such as Super Follows,
Commerce, Subscriptions, Tip Jar, and we can reach every single person on the
planet because of that instead of going down a market-by-market-by-market
approach,” Dorsey explained. “I think this is a big part of our future. I think
there is a lot of innovation above just currency to be had, especially as we
think about decentralizing social media more and providing more economic
incentive. 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 rep confirmed this is the first time that Dorsey
has spoken publicly about how Twitter could integrate bitcoin into its product
lineup.
Dorsey also pointed out Twitter would not be alone in
pursuing a crypto strategy, noting that Facebook was backing the digital
currency Diem.
“There’s an obvious need for this, and appreciation for it.
And I think that an open standard that’s native to the internet is the right
way to go, which is why my focus and our focus eventually will be on bitcoin,”
he noted.
Overall, Twitter delivered strong earnings in a pandemic
rebound, which saw the company posting its fastest revenue growth since 2014,
according to CNBC, which drove Twitter shares 9% higher in extended trading.
The company pulled in Q2 revenue of $1.19 billion versus the $1.07 billion Wall
Street expected a majority ($1.05 billion) from its advertising business. It
also saw earnings per share of 20 cents versus the 7 cents expected.
However, monetizable daily active users (mDAUs) — Twitter’s
own invented metric meant to fluff up often flat monthly user growth — were
only at 206 million, an 11% year-over-year increase, while analysts were
counting on 206.2 million. The company blamed the decline on a slower news
cycle and end of shelter-in-place in many U.S. communities, which may have
impacted Twitter usage during the quarter.