Can You Invest in Bluesky Social Stock?

Bluesky is a social media platform where users share text-based posts of 300 characters or fewer, which are known as “skeets.”

Sound familiar?

Yes, Bluesky is a (decentralized) clone of Twitter. But, technically, it's not a copycat — since it was created by Twitter.

Here's the story behind Bluesky plus whether or not you can invest in its stock.

What is Bluesky?

Bluesky was founded in 2019 by Jack Dorsey, the founder and then-CEO of Twitter. The platform was modeled after and developed in parallel with Twitter.

Why build a second version of Twitter?

Bluesky began as a research initiative to explore decentralizing the platform. Instead of one, platform-wide algorithm, users would be able to choose from or create their own algorithmic feeds. This would give users more control over their data and experiences.

The platform also uses a custom open-source framework, known as AT Protocol, meaning people outside the company can see how the platform is built and what is being developed.

Jay Graber, a former software engineer and the founder of Happening, was hired in August 2021 to lead the project.

Shortly after Elon Musk acquired Twitter in October 2022, the company severed all legal and financial ties with Bluesky Social.

Now operating as an independent entity, and without fear of cannibalizing its own business, Bluesky worked quickly to complete the first version of its product.

In February 2023, it quietly launched an invite-only beta version of the app. In February 2024, with around three million users, Bluesky officially launched to the public.

While Twitter (now X) has been slowly bleeding users and advertisers ever since Musk's acquisition, the re-election of Donald Trump (and Musk's close ties to him) seems to have accelerated the shift.

Many of these users have found their way onto Bluesky, which recently topped 20 million users.

This is still a far cry from the 335 million monthly active users (MAUs) on X (or the 275 million MAUs on Meta's Threads), but it could be the beginning of a broader movement to the decentralized version of Twitter.

Can you buy Bluesky stock?

No, you cannot invest in Bluesky.

The Bluesky platform is wholly owned by Bluesky, PBLLC, a U.S. public benefit corporation.

What is a public benefit corporation?

A public benefit corporation (PBC) is a for-profit entity that aims to generate social and public good and must report on its progress toward those goals.

PBCs are legally obligated to balance financial goals with their public benefit purpose. Investors should assess whether the company's mission aligns with their values and risk tolerance, in addition to performing their own due diligence.

Bluesky, PBLLC is a private company. It is not traded on the public markets and there is no Bluesky stock symbol, though it could become publicly traded via an IPO in the future.

However, there may be a way to buy shares while it's still a private company.

Pre-IPO marketplaces are platforms where investors can buy and sell shares of private companies before they go public.

By participating in pre-IPO markets, investors can potentially benefit from a company's value increase upon going public, though the investments carry significant risks due to limited liquidity and market volatility.

There are several different marketplaces for this, including Linqto and Hiive.

As of the time of this writing, there are no shares of Bluesky stock available on Hiive or Linqto, though some may be listed in the future. You can go here to search for Bluesky listings on Hiive and here to search for listings on Linqto.

It's worth noting, however, that only accredited investors can invest on these platforms.

Accreditation requirements

To qualify as an accredited investor, you must meet one of the following criteria:

• Have an annual income of $200,000 individually or $300,000 jointly.
• Have a net worth that exceeds $1,000,000, excluding your main residence.
• Be a qualifying financial professional.

Alternative investments to Bluesky

You may also be interested in investing in some of Bluesky's publicly traded competitors. Here are a few:

• Meta Platforms: Meta (META) is the company behind Facebook, Instagram, WhatsApp, Threads, and more. Threads is an app featuring discussions composed of short text — similar to X and Bluesky. Meta's platforms saw 3.29 billion daily active users in the last quarter and generated $21.78 billion in revenue. 
• Reddit: Reddit (RDDT) is a forum organized around topics and communities. It had just under 100 million daily active users in the last quarter and its TTM revenue is $1.12 billion.
• Snap: Not as focused on text as Threads or Reddit, Snap (SNAP) primarily offers Snapchat, a visual messaging app. Snapchat had about 443 million daily active users in the last quarter and brought in $5.17 billion in TTM revenue.

Additionally, you might be interested in Microsoft (MSFT), which owns LinkedIn, or ByteDance, which owns TikTok, though it should be noted that ByteDance is also still a private company.

You can see a list of all publicly traded companies in the internet content and information sector here.

If you're interested in exchange-traded funds (ETFs), the Global X Social Media ETF (SOCL) invests in companies focused on social media. You can see its holdings here.

How much is Bluesky worth?

In October 2024, Bluesky raised its second funding round: a $15 million series A.

This round comes after an $8 million seed raise in July 2023. However, no valuation figure was given at the time of either round.

Bluesky was incubated inside Twitter until Musk's acquisition in October 2022.

Why are people leaving X (Twitter)?

In addition to its name change, X has undergone many large changes since Musk took ownership.

Two controversial changes include how the block feature functions and the overhaul of the blue checkmark system — these used to indicate authenticity but are now for sale at $8 per month.

Critics have also argued there's been an increase in harassment, bigotry, and other controversial conduct due to a lack of content moderation.

And recently, there's been a larger user exodus from X as some users grow concerned about Elon Musk's own use of the platform and his ties to President-elect Trump.

A newsworthy quantity of users have been leaving X for Bluesky, including high-profile celebrities and businesses like The Guardian.

In the first week after Trump's win in the 2024 election, 2.25 million people got Bluesky accounts. In the time since, almost one million people per day signed up for Bluesky.

It's worth noting, however, that signups to Meta's Threads have also increased.

Is Bluesky the next X (Twitter)?

Only time will tell if Bluesky is going to become the new X (Twitter). 

Several other competitors have arisen over the years, but so far none have as large of a user base as X (Twitter).

For example, Mastodon, another decentralized version of Twitter, was created in October 2016. While decentralization is supposed to help with content moderation issues, Mastodon has faced many of the same problems as X.

How does decentralization work?

Decentralization aims to enhance content moderation by distributing control among stakeholders, reducing the reach of a central authority. It may improve transparency and scalability, plus reduce the risk of central system failures.

However, decentralization does face challenges, such as inconsistent standards and enforcement.

Mastodon has an estimated 975,000 MAUs, down from its peak of 2.5 million in 2022.

Meta's Threads is probably the most successful competitor to date, with 275 million MAUs, though this is still fewer than X's 335 million. Threads is also facing moderation issues.

Furthermore, Jack Dorsey, who founded and helped fund Bluesky, left the company's board in May 2024. Dorsey said it was becoming another Twitter and was "literally repeating all the mistakes" Twitter made

So only time will tell if Bluesky will go the distance. But for now, it's definitely having a moment.