Square Puts 1% of Total Assets in Bitcoin in Surprise $50M Investment

Daniel Fowler
October 28, 2020

The payments firm says it has bought 4709 bitcoins, which are now trading at almost $11,000, up from just over $7000 in January.

The company's co-founder Jack Dorsey has been a long-term proponent of Bitcoin and crypto, while the company's CashApp allows its users to invest in Bitcoin.

In an announcement published on its official website, the company said that the bitcoins were acquired at an aggregate purchase price of $50 million.

Dorsey shared the company statement from his Twitter handle.

"We believe that bitcoin has the potential to be a more ubiquitous currency in the future", said Square CFO Amrita Ahuja. According to the company's blog post, the investment represents approximately 1 percent of Square's total assets as of the end of the second quarter of 2020.

As a mission-driven investment, Square's $50 million gets comes amid Dorsey's terribly public spat over company responsibility with another crypto-friendly chief operating officer, Coinbase's Brian Armstrong. Continuing, he argued that as the cryptocurrency grows in adoption, they intend to "learn and participate in a disciplined way".

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"The investment underscores Square's goal of economic empowerment", reads the official announcement by the payments company.

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

Square is also now the second technology firm to go long on bitcoin in recent months after MicroStrategy, a business intelligence firm, crowned the crypto as its treasury reserve asset of choice.

"This investment reflects our belief that Bitcoin, as the world's most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash".

Bitcoin's price jumped 2.5% following the announcement, while shares in Square popped around 1%.

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