Key highlights:
- Square has purchased $50 million worth of Bitcoin
- The company provided additional details about its Bitcoin purchase in a whitepaper
- Square CEO Jack Dorsey has expressed interest in Bitcoin on numerous occasions
Square invests $50 million in Bitcoin
US-based financial services company Square has invested $50 million in
While Square’s big Bitcoin investment is certainly a bullish signal for the crypto market, it doesn’t come as too much of a surprise – the company has been involved with Bitcoin for quite some time now. Square offers users the ability to buy and sell Bitcoin through its popular Cash app, and also employs a small team of Bitcoin developers and designers under the name Square Crypto. Square CEO Jack Dorsey, who is perhaps more famous as the founder of social media giant Twitter, has expressed interest in Bitcoin on numerous occasions.
A very interesting aspect of Square’s Bitcoin investment is that the company has detailed the process by which it acquired its Bitcoin in a short whitepaper. In the whitepaper, Square reveals that it bought its BTC through the same “bitcoin liquidity provider” the company uses for its Cash app.
Square’s chief financial officer Amrita Ahuja said that the company believes Bitcoin has the potential to become more commonly adopted in the future:
“We believe that bitcoin has the potential to be a more ubiquitous currency in the future. 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.”
Are we going to see more major companies make an investment in Bitcoin?
Square is not the first publicly-listed company to make a sizeable investment in Bitcoin. In August, business intelligence firm MicroStrategy announced that it had purchased $250 million worth of Bitcoin, and the company doubled down with a further $175 million investment in September.
However, it’s worth noting that Square is a much larger company than MicroStrategy – it commands a market cap valuation of $77.77 billion, compared to MicroStrategy’s valuation of $1.55 billion.
