Uber CEO: We Won’t Invest in Bitcoin, Would Rather Keep the Non Existent Cash Safe
PepsiCo also doesn’t have any interest in investing in Bitcoin either, due to the digital asset being “speculative” and just like UBER share prices fell, PEP’s also took a hit, that too in spite of better-than-expected earnings and revenue.
Uber chief executive officer Dara Khosrowshahi says the company has discussed the idea of buying Bitcoin with corporate cash but “quickly dismissed” it.
After Tesla announced a $1.5 billion purchase of BTC and Twitter is also considering the option of adding Bitcoin to its balance sheet, Uber took the route that General Motors (GM) is taking, no investing in the cryptocurrency.
“It’s a conversation that’s happened that has been quickly dismissed,” Khosrowshahi said in an interview on CNBC’s “Squawk Box.” “We’re going to keep our cash safe. We’re not in the speculation business.”
However, unlike GM, Uber doesn’t have any cash to spare with their free cash flow running in the negative.
Laughable….$UBER Ceo saying they are going to keep their cash safe instead of getting into Bitcoin. Sir, point me to cash. pic.twitter.com/uiyhOsNYjh
— Cantering Clark (@CanteringClark) February 11, 2021
The company's decision not to invest in Bitcoin saw the share prices of Uber taking a hit initially only to rise to $63.53 but still just 0.5% up from Wednesday’s close. Khosrowshahi said,
“The upside in our company is in the business that we’ve built, not the investments that we invest in.”
Like Uber, PepsiCo CFO, Huge Johnston, said the beverage giant has “had the conversation” but is not going to follow in Tesla, MicroStrategy, and Square's footsteps. Johnston said,
“The conclusion we came to pretty quickly was bitcoin is too speculative for the way we manage our cash portfolio.”
Just like Uber, PepsiCo’s shares also dropped by 1.22%; they have actually been falling ever since the beginning of 2021, despite the company's better-than-expected earnings and revenue.
The ride-hailing and food-delivery provider, Uber, however, is interested in considering the option of accepting cryptocurrencies as payment, something GM is also evaluating. Khosrowshahi said,
“Just like we accept all kinds of local currency, we are going to look at cryptocurrency and/or bitcoin in terms of currency to transact.”
“That’s good for business. That’s good for our riders and our eaters. That we’ll certainly look at and if there’s a benefit there, if there’s a need there, we’ll do it. We’re just not going to do it as part of a promotion.”
The company reported mixed fourth-quarter earnings with revenue of $3.17 billion, below what Wall Street expected. The company's overall loss for 4Q20 was $968 million, down from a $1.1 billion loss in the same period last year.