Feb 25, 2021
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Square buys Bitcoin for $ 170,000,000

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Payment service provider Square has reinforced its commitment to Bitcoin. Despite — or perhaps because of — the recent dent in the Bitcoin price, Square has bought BTC for the second time.

After it looked briefly in the Bitcoin market as if the bears were about to take over the reins, a fresh ration of bull food came across the Atlantic yesterday. The American FinTech Square has bought Bitcoin again. According to a press release on February 23, Square has invested more than three times as much US dollars this time as it did when it first bought Bitcoin in October 2020.

Square also announced today that it has acquired approximately 3,318 bitcoins for a total purchase price of $ 170 million. Combined with the previous purchase of $ 50 million worth of Bitcoin, that equates to approximately five percent of Square’s total cash and marketable securities as of December 31, 2020.

When the company announced in October 2020 that it had shifted some of its cash reserves into Bitcoin, BTC was trading between $ 10,000 and $ 11,000. FinTech bought 4,709 BTC at the time.

The fact that Square has now massively expanded its BTC position despite the fivefold increase in the Bitcoin rate should make some Bitcoin bulls click their tongues. After all, the average purchase price this time was $ 51,235 — apparently, Square believes that this is far from the end of the flagpole.

Even before Square even got into Bitcoin, FinTech made an important contribution to the adaptation with its Cash App. Cash app users have been able to buy and sell Bitcoin since the end of 2017. Square hardly makes any profit with this: According to its own information, the margin is deliberately kept low in order to promote the BTC adaptation. Revenue generated by the Bitcoin integration revenue increased since its introduction rapidly. With Square Crypto, the company also has a largely independent crypto department that develops and promotes Bitcoin-related open source projects. The goal: Bitcoin to become the world currency.

With the pioneer MicroStrategy, Square is one of the first companies to include Bitcoin on its balance sheet. With 8,027 BTC, FinTech ranks fourth among the exchange-traded companies with Bitcoin reserves. This can be seen from the numbers of the data aggregator Bitcoin Treasuries. After that, MicroStrategy, which has declared Bitcoin to be its primary cash reserve, still takes the top spot. In second place is Tesla, which catapulted the Bitcoin price to a record high at the beginning of February with its billion-dollar investment in digital gold.

  • MicroStrategy: 71.079 BTC

It cannot be ruled out that Squares’ renewed Bitcoin commitment has played its part in the fact that the recently ailing crypto market is showing clear signs of recovery today .

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Article Categories:
Bitcoin · btc · Crypto · cryptocurrency · finance

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