Square buys $50 million from Bitcoin (BTC) for its cash position

Bitcoin

Square buys $50 million from Bitcoin (BTC) for its cash position

IN BRIEF

  • The company founded by Jack Dorsey purchased 4709 Bitcoins (BTC) for its cash.
  • It is the second company listed on Wall Street to invest in Bitcoin (BTC) after MicroStrategy.

Square announces the acquisition of 4,709 Bitcoin (BTC) for a value of approximately $50 million at the time of publication.

Square acquires more than 4,500 BTCs

Jack Dorsey, founder of Square and Twitter, is a long-time supporter of Bitcoin and cryptomoney.

The press release states that the investment represents approximately 1% of Square’s assets at the end of the second quarter of 2020. As at 30 June, the company’s total assets amounted to $7.8 billion, so the acquisition could represent around 0.64% of the company’s assets.

Square has even described cryptography as an „instrument of economic emancipation“. In the press release of the announcement published this Thursday, October 8, we can read :

We believe that cryptomoney is an instrument of economic emancipation and provides a means for the world to participate in a global monetary system, which is in line with the company’s objective.

The MicroStrategy Pioneer

Square is the second Wall Street company to enter Bitcoin Evolution after MicroStrategy. This company specialising in software publishing has made BTC its main cash reserve.

MicroStrategy holds over 38,000 BTCs or $425 million on its balance sheet.

But Square’s investment in Bitcoin is much more in line with its corporate identity and the services offered by the company founded by Jack Dorsey. Indeed, the Cash application is a key entry point for many retail investors in the cryptosystem.

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