Will Twitter Buy BTC After $1.25 Billion Convertible Note Offering?

Twitter CEO Jack Dorsey’s interest in Bitcoin is not unknown. Square has purchased more than 7,000 BTC. Now, Twitter has announced a convertible note offering, where the company looks to raise $1.25 billion. Has Dorsey taken a page out of Saylor’s book? 

Jack Dorsey and Bitcoin: A History of Admiration

Dorsey had tweeted that his passion for Bitcoin stemmed from the model the cryptocurrency follows. His recent tweet regarding Bitcoin makes it obvious that Dorsey sees Bitcoin as the foundational internet technology—free from the clutches of centralized, concentrated ownership:

“The reason I have so much passion for #Bitcoin is largely because of the model it demonstrates: a foundational internet technology that is not controlled or influenced by any single individual or entity. This is what the internet wants to be, and over time, more of it will be.”

As for Twitter’s stance on Bitcoin, their CFO Ned Segal recently said:

“We might consider whether we would be transferring dollars to bitcoin at the time of the transaction or if we wanted bitcoin on our balance sheet ready to complete that transaction.”

When asked to be more specific on Twitter’s strategy on leveraging their BTC holdings, Segal said Twitter had done a lot of “upfront thinking” on how to become conversant in utilizing BTC as a medium of payment. Reportedly, the social media giant examined, in detail, how they might pay a vendor or an employee if they asked for payment in Bitcoin. 

Twitter and Bitcoin: Anything Beyond Contemplation?

Neither Twitter’s consideration of Bitcoin as a payment mechanism nor as a treasury reserve asset are likely to have been a recent development. Some instances show that Jack Dorsey has been testing the viability of Bitcoin for some years now. 

Payment facilitator Square, another company led by Jack Dorsey, recently bought $170 million worth of Bitcoin. With this purchase, Square added 3,318 BTCs to its October 2020 buy of 4,709 BTCs. Total Bitcoin holdings of Square now stands at 5% of its total assets as of the end of 2020. 

Within this context, comes Twitter’s decision to raise $1.25 billion through a convertible senior note offering. This is precisely the decision that has been making the crypto community debate whether the social media giant has been planning to allot some of the raised funds to buy BTC. 

Is Twitter Following Microstrategy to Buy Bitcoin via Convertible Notes?

The link between raising funds by offering convertible senior notes through a private placement to qualified institutional buyers, and investing in Bitcoin, is not far fetched when examining the full picture. 

A similar initiative was undertaken by business intelligence giant Microstrategy on at least two occasions. The company, led by Michael Saylor, raised more than $1.6 billion through convertible notes. Interestingly, Microstrategy has allocated nearly all its funds into Bitcoin, regarding Saylor as something along the lines of a modern day Hugo Stinnes. 

Given the history of Dorsey’s interest in Bitcoin, his direct investing in Bitcoin via Square, Twitter’s CFO publicly explaining how the company has looked into Bitcoin, and now a convertible note offering—it would not be surprising if the social media giant decides to finally sink its teeth into BTC. As of now, crypto experts, investors, and enthusiasts worldwide are busy speculating and drawing parallels between the decisions of Microstrategy and Twitter.

Provided all of the above context, who would be surprised?

Do you think that Twitter is finally all set to make an investment in Bitcoin? Let us know below in the comments.