According to Fundstrat Global Advisors co-founder and managing partner Tom Lee, Jack Dorsey’s decision to step down as CEO of Twitter may boost bitcoin.
Dorsey, who announced his resignation on Monday and plans to focus on payments business Square, is also an outspoken proponent of cryptocurrency (particularly the pioneer cryptocurrency Bitcoin (BTC)).
Notably, Square may be at the core of Dorsey’s concentration on crypto and Bitcoin innovation, an outlook that leads Lee to believe that the ex-Twitter CEO’s move is positive for cryptocurrency.
Lee observes that there isn’t “enough funding genuinely allocated toward crypto innovation” in the crypto field. During an interview with CNBC’s “Tech Check,” the Fundstrat CEO noted that its employees, such as Dorsey, have the ability to invest in and rally support for broader crypto development.
Square is taking efforts toward cryptocurrency innovation
Square, MicroStrategy, and Tesla are three of Wall Street’s most prominent bitcoin-invested firms, with the addition of BTC to the firm’s balance sheet helping to greater revenues despite skyrocketing prices. But it isn’t all.
Square’s focus on making it easier for individuals to invest and spend their BTC has recently gained traction, and this could increase now that Dorsey is completely entrenched in the company.
The payments company announced intentions in July to integrate the Bitcoin network with decentralised finance (DeFi) services. Dorsey stated in October that the platform was considering establishing a solar Bitcoin mining business.
Aside from that, Square revealed in June that it was building a Bitcoin hardware wallet aimed at institutional investors, and that it is in the midst of developing a decentralised exchange (DEX), as explained in a newly released whitepaper.
The surge in crypto interest has been fueled by significant breakthroughs in the DeFi, NFTs, and, most recently, Metaverse sectors. However, Lee believes Square’s Dorsey should do even more, telling CNBC that the budding cryptocurrency market isn’t “over-invested yet.”
Lee’s viewpoint is shared by GK ETF creator and CEO Ross Gerber, who feels Dorsey’s retirement from Twitter makes sense and could benefit Square Inc.
