Home

Products

Institutions

Resources

Company

Language

Download

Amber Group logoAmber Group logo

Home

Products

Institutions

Resources

Company

Sign Up

Download

En

Home / Market News / 

Square Invests $50 Million in Bitcoin

Square Invests $50 Million in Bitcoin

TB

The Block | 2020/10/08

Quick Take

Square, Twitter CEO Jack Dorsey's payment company, has purchased $50 million worth of bitcoin.

The investment represents approximately 1% of Square's total assets as of Q2 2020.

Square has become the second publicly-listed company after MicroStrategy to invest in bitcoin.

Square, Twitter CEO Jack Dorsey's payment company, has purchased around 4,709 bitcoin at an aggregate purchase price of $50 million, i.e. at an average price of around $10,600 per bitcoin.

Announcing the news on Thursday, Square said "cryptocurrency is an instrument of economic empowerment and provides a way to participate in a global monetary system, which aligns with the company's purpose."

The investment represents approximately 1% of Square's total assets as of Q2 2020.

"We believe that bitcoin has the potential to be a more ubiquitous currency in the future," said Square's CFO Amrita Ahuja. "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."

Square has become the second U.S.-based publicly-listed company after MicroStrategy to invest in bitcoin.

MicroStrategy has purchased a total of 38,250 bitcoins to date, currently worth $410 million, as part of its capital allocation strategy. CEO Michael Saylor told The Block in an interview last month that bitcoin is the "best money ever created."

Saylor said, compared to gold and the U.S. dollar, bitcoin is a superior asset for a treasury given it is not deflationary by design.

"Gold is defective in the 21st century," he said of bullion. "It boils down to a very simple principle. It's going to debase between 2% and 4% a year, certainly over the next hundred years." As for the dollar, Saylor said, the problem is monetary policy expansion and inflation — which comes at the cost of purchasing power.

Saylor also revealed in the interview that 90% of MicroStrategy's treasury balance is in the form of bitcoin.

As for Square, the company has been active in the bitcoin space since 2018 when its Cash App offering enabled buying and selling of the cryptocurrency.

In 2019, the company formed Square Crypto, an independent team solely focused on contributing to bitcoin's open-source work. Most recently, it launched the Cryptocurrency Open Patent Alliance (COPA), a non-profit organization encouraging crypto innovation and opening access to patented crypto inventions.

 

Original title: Jack Dorsey's Square purchases $50 million worth of bitcoin
Disclaimer

The views expressed in this article are the author's own and do not necessarily reflect the view of Amber Group. Amber Group shall not be held liable under any circumstances for any losses, damages or expenses arising from the use of any content mentioned in this article.

The information contained on this website is provided for informational purposes only, with no warranties, or guarantees made as to the accuracy, completeness or timeliness of it. Amber Group assumes no liability or responsibility for any errors or omissions in the information contained on this site. We strongly encourage you to conduct your own research before taking any action.

This site may contain copyrighted material, the use of which has not always been specifically authorized by the copyright owner. If you wish to use the copyrighted material from this site for the purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. Authors or publishers who claim ownership of copyrighted articles reprinted on this website and wish for the content to be removed may email us directly at official.accounts@ambergroup.io

If you would like to connect with us about any of the distributed content or other inquiries, please email us at official.accounts@ambergroup.io with the relevant documentation.


View Original Article >

Most Popular
US Fed Is Broading Its Research on CBDC to Explore its “Intrinsic” Value Drivers
Fed economists are beginning their deep dive into CBDC research, hoping to identify the "intrinsic" value drivers of a digital dollar.
The Digital Yuan Pilots Have Processed $300M So Far According to PBoC Offical
China’s digital yuan pilot program is picking up speed.
The New Mate 40 Is Equipped with Digital Currency Wallet
China’s digital yuan looks closer than ever to launch with the news that Huawei will be supporting the central bank digital currency (CBDC) on an upcoming range of phones.