In a deal with hedge fund Elliott Management, Twitter agreed to give a board seat and buy back $2 billion in stock, ending Elliott Management’s efforts for sometime to oust the platform’s CEO Jack Dorsey.
After Elliott Management took a fairly large stake in Twitter, the investment company pushed for several changes, according to a report by Bloomberg. One of the changes include the replacement of the current Chief Executive Officer, Jack Dorsey.
“If you don’t have the financial means to build financial freedom for others, a Square Crypto Grant could be what you need,” read an announcement from Square Crypto in a medium post. For those who don’t know what Square Crypto is, well the newly created cryptocurrency division is bitcoin-buying Cash App from payments giant Square and Jack Dorsey, Twitter’s co-founder and current CEO, also happens to be the co-founder and CEO of Square.
Dorsey’s position as Twitter’s CEO was at stake ever since Elliot Management, a Wall Street investment management firm, bought Twitter stock worth $1 billion. It is believed that the corporation want Dorsey out of Twitter due to ‘not so well’ performance of Twitter stock, accusations of political favoritism withing the tech company and the 2020 U.S. election that holds immense importance not just to the United States but globally. On top of it, Elliot Management is headed by a top bitcoin critique, Paul Singer once called the leading crypto “one of the most brilliant scams in history.”
How Dorsey Contributes to the ‘Bitcoin Cause’?
Dorsey’s Square offers an extensive range of products payments ecosystem and to answer this question, the stats of Square’s bitcoin buying Cash App speaks for itself. A massive chunk of Cash App revenue depends heavily on bitcoin.
According to a shareholder letter published on Feb. 28, bitcoin earnings amounted to $178 million during the last quarter of 2019, while total non-bitcoin revenue equaled $183 million with almost 40% of Square’s bitcoin revenue for the year and posted a profit of around $8 million for 2019 as compared to $1.7 million for the year before.
Square’s Cash App is 23rd most used app on Google Play, while it is ranked number one on the platform in finance app category with 24 million active users and even left behind the payment industry giant PayPal.
In an interview, with American comedian and podcast host, Joe Regan, Dorsey, yet again declared that he believed Bitcoin to be of the Internet.
[Bitcoin] was something that was born on the Internet, that was developed on the Internet, that was tested on the internet…It is of the internet.
Twitter CEO made similar claims before, back in May last year. When he spoke rather fondly of cryptocurrencies and Bitcoin according to Bloomberg.
The Internet deserves a native currency; it will have a native currency. I don’t know if it’ll be Bitcoin or not, but I hope it will be.
Facebook and Twitter, the two social media giants have been ruling the world for several years. While the former had revealed its plans for entering the crypto space with its own cryptocurency Libra, the latter isn’t interested in following anytime soon.
Dorsey told in an interview that he would choose open standards such as bitcoin over any other cryptocurrency. Showing trust in bitcoin, he said:
I think [Bitcoin’s] the best bet because it’s been the most resilient, it’s around for 10 years, it has a great brand and it’s been tested a bunch. As I look at all cryptocurrencies that could fill that role of being the native currency for the internet, [Bitcoin is] a pretty high probability.