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Square Buys Another $170 Million in Bitcoin, Initial Investment Up 376%

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Jack Dorsey’s Square has announced the purchase of approximately 3,318 BTC amounting to $170 million at the time of purchase. Square seems to have purchased Bitcoin at an average price of $51,235 per coin.

Square has made this Bitcoin investment public along with its Q4 2020 and full year 2020 results release.

This is not the first BTC purchase made by Square. Its first tryst with Bitcoin was announced in October last year when it made a purchase of 4,709 BTC worth about $50 million at the time of purchase. It had stated at the time that Bitcoin’s value proposition “aligns with the company’s purpose.”

Square Hungry for More Bitcoin

Square’s first purchase of 4,709 BTC was made at an average price of $10,617 per coin. Considering that, its investment had an enormous payoff with 376% returns in just over four months.

This could be Square’s motivation to buy in for another round. Combined with the first round of investment, Square’s Bitcoin assets now amount to approximately 5% of its total cash, cash equivalents, and marketable securities.

Square NBC

Jack Dorsey Strengthens His Stance

Jack Dorsey’s interest in Bitcoin is not newly found. He has been a long-term proponent of cryptocurrencies in general. Square’s Cash App has allowed users to trade in Bitcoin since 2018 and had driven nearly half of the company’s profits in Q4 2020.

Dorsey recently even teamed up with Jay-Z to announce a Bitcoin Development Trust of 500 BTC which was worth nearly $24 million at the time of the announcement. They have announced the fund will initially focus on Africa and India specifically.

Jack Dorsey, also the CEO of Twitter, yesterday donated 1 BTC to Brink, a nonprofit group that focuses on Bitcoin’s technological framework. In the past, Dorsey has also referred to Bitcoin’s whitepaper as “poetry” stating the “Bitcoin whitepaper is one of the most seminal works of computer science in the last 20 or 30 years” on Lex Fridman’s podcast last year in April.

The move is similar to the likes of Michael Saylor and MicroStrategy’s investments into BTC. However, MicroStrategy’s market capitalization is dwarfed in comparison to Square’s. At the time of press, MicroStrategy’s market capitalization is only $6.62 billion compared to Square’s $115.70 billion — a 17-fold difference.

The post Square Buys Another $170 Million in Bitcoin, Initial Investment Up 376% appeared first on BeInCrypto.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
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