Jack Dorsey's Square adds 4,709 Bitcoin to its balance sheet

Andrew Cummings
October 28, 2020

Square has accepted bitcoin as a form of payment since 2014.

U.S. Payment company Square is now the latest publicly-listed firm to invest directly in Bitcoin following MicroStrategy's $425 million Bitcoin acquisition back in September.

Thursday's announcement also constitutes a further extension of Suare's interaction with Bitcoin.

Square Inc. has announced today that it has purchased 4,709 BTC for approximately $50 million, allocating around 1 percent of its total assets as of Q2 2020 to Bitcoin. The three co-founders are Jack Dorsey (who is also the company's Chairman and CEO), Jim McKelvey, and Tristan O'Tierney.

But Square's bitcoin investment is way a lot of in line with its company business services and identity than was the case for MicroStrategy.

Twitter CEO had said earlier that "bitcoin has the potential to be a more ubiquitous currency in the future", calling cryptocurrency "an instrument of economic empowerment" that "provides a way for the world to participate in a global monetary system". "We do believe that this is a transformational technology for our industry and we want to learn as quickly as possible".

"For a corporation that's building product supported a lot of inclusive future, this investment could be a tread on that journey".

It also mentioned that this investment "represents approximately one percent of Square's total assets as of the end of the second quarter of 2020". Therefore, the Bitcoin holdings may account for 0.64% of the company's assets.

This news comes months after another publicly traded company, MicroStrategy, made a decision to convert a portion of its treasury into Bitcoin.

Right now, Bitcoin's prices are at $10,775 for one coin but it is worth noting that the prices keep on fluctuating as they were as low as $4000 a few months ago and they went as high as $20,000 in 2018.

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