Elliott Management Corp. – an activist investor owned by billionaire Paul Singer – has plans to shake up the management at Twitter.
The hedge fund has already nominated four directors to Twitter's board, the sources said.
Dorsey has also set up a dedicated unit within Square to work on helping advance bitcoin's technology. Square's Cash App offers bitcoin services, which provided almost half its revenue in Q4 2019.
In his time as Twitter's commander-in-chief, though, he's seen criticism over his management style, with the platform failing in some people's eyes to be sufficiently innovative and focusing instead on its core messaging service.
Since Dorsey returned to lead Twitter in mid-2015, the firm's stock have dropped 6.2 percent. Facebook's, on the other hand, have risen more than 121 percent over the same period, as per the report.
Bloomberg's sources suggested that, with three board places to become available at the firm's next annual meeting, Elliott wanted to be sure to nominate enough candidates to fill the openings.
The investment firm has been in private talks with Twitter about its concerns, Bloomberg said.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.