Payment Company Square, Inc. Invests $ 50 Million in Bitcoin
On Oct 08, 2020
Square, Twitter CEO Jack Dorsey’s payment company, has invested $50 million into Bitcoin. In a statement today, the company announced that it purchased 4,709 Bitcoins. This is a part of the firm’s investment strategy. The purchase represents approximately one percent of Square’s total assets, according to data published in the second quarter of 2020.
The company said in a statement that the cryptocurrency is an economic empowerment tool. Square also believes, cryptos provides a way to participate in the global monetary system. Square, Inc. started trading Bitcoin in 2018 with the Cash App. It enables the selling and buying of leading cryptocurrency.
Amrita Ahuja, Square’s CFO, used the following statements:
“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.”
Second public company to invest in Bitcoin
Square, Inc. became the secondary public company investing in Bitcoin after MicroStrategy. In August and September, business intelligence company MicroStrategy purchased a total of 38,250 BTC. According to MicroStrategy CEO Michael Saylor, the bitcoin purchase price aggregated $ 425 million, including fees and expenses. Saylor said that compared to gold and the US dollar, Bitcoin is not deflationary by design, but a superior asset for a reserve. It was predicted that the purchase made by MicroStrategy, would later be followed by other companies. Michael Saylor was saying that Bitcoin is “the best money ever created.”
Square has purchased 4,709 BTC for now. This number may increase in the future, just as after the first purchase of MicroStrategy.
Messari founder Ryan Selkis evaluated this development on Twitter. In his opinion, it is more important that Square bought Bitcoin than MicroStrategy bought Bitcoin. According to Selkis, this is because Square is a higher caliber company and invested in a more logical way.
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