Square acquires 4,709 Bitcoin (BTC) for $ 50 million
The Square payment platform bought $ 50 million in Bitcoin, or one percent of its total assets in the second quarter of 2020.
Cryptocurrency has recently gained the attention of the corporate sector, as some companies are even investing in crypto assets as part of their capital allocation strategy. For example, Square, the San Francisco, California-based payments giant, recently bought $ 50 million worth of Bitcoin (BTC) as part of the company’s larger investment in digital currencies.
On Thursday, October 9, Square Inc. announced that it had purchased 4,709 BTC worth approximately $ 50 million, The edge reported. The company added that the value of the recent cryptocurrency purchase was around 1% of its total assets at the end of the second quarter of 2020.
Square explained that his purchase of Bitcoin reflected his belief that “cryptocurrency is an instrument of economic empowerment and enables the world to participate in a global monetary system.” The payment platform started accepting BTC as a payment method in 2014.
The company expects the use of Bitcoin to skyrocket in the coming years. He plans to come up with more BTC-related projects in the future as the token goes mainstream.
“We believe that bitcoin has the potential to become a more ubiquitous currency in the future,” Square Said CFO Amrita Ahuja. “As the adoption proceeds, we intend to learn and participate in a disciplined manner. For a company that is building products based on a more inclusive future, this investment is a step on that path. “
After accepting Bitcoin as a payment method in 2014, Square has launched a number of BTC-related products and projects since then. For example, it launched Bitcoin trading through its Cash app in 2018, allowing its users to buy and sell crypto through their mobile devices.
In 2019, she also created Square Crypto, the company formed Square Crypto, an independent team that contributes to open source Bitcoin work. Last month, he also launched the non-profit Cryptocurrency Open Patent Alliance (COPA) which aims to encourage innovation.
The company’s decision to invest in Bitcoin has paid off. In May, it brought in a staggering $ 306 million for the first quarter of 2020, a 367% increase from levels a year ago.
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