- General
- October 9, 2020
- 3 minutes read
Square Dips $50 Million Into Bitcoin
Jack Dorsey, CEO, Square. Photo credit: The DEMO Conference, licensed under Creative Commons Square, the popular payments company, has announced that…
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| Jack Dorsey, CEO, Square.
Photo credit: The DEMO Conference, licensed under Creative Commons
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Square, the popular payments company, has announced that it’s purchased 4,709 bitcoins for an aggregate price of $50 million to be held as a store of value. The $50 million investment seems quite big but actually represents just roughly one percent of Square’s total assets as of the end of the second quarter of this year. Square buying bitcoin doesn’t seem surprising, given the company owns and operates the Cash App through which it generated $875 million of bitcoin revenue in the second quarter of this year alone.
Square’s purchase of bitcoin for holding purposes marks its position among a seemingly increasing number of publicly-traded companies to adopt cryptocurrency as a store of value, another of such firms being MicroStrategy, a publicly-traded business intelligence company that recently bought up $425 million of bitcoin.
“We believe that bitcoin has the potential to be a more ubiquitous currency in the future,” said Square’s Chief Financial Officer, Amrita Ahuja. “As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.”
