Square Buys $50 Million In Bitcoin

 Square announced on Thursday that it had bought 4,709 bitcoins worth about
$50 million.
 This represented approximately 1% of Square's total assets as of the end of Q2
2020.
 "Square believes that cryptocurrencies are a means to increase economic power
and provide the world with a way to participate in a global monetary system
consistent with the company's objectives," the company said in a press release.

Payments company Square has made unusual use of its funds to buy large amounts of
bitcoin.
Square announced on Thursday that it had bought 4,709 of his Bitcoins worth about $50
million. This represents approximately 1% of Square's total assets as of the end of Q2
2020.
The company said in a press release;
“Square believes that cryptocurrency is a vehicle for increasing economic power
and provides the world with a way to participate in a global monetary system that
is aligned with our purpose.” https://www.cnbc.com/2020/10/08/square-buys-50-
million-in-bitcoin-says-cryptocurrency-aligns-with-companys-purpose.html
According to the industry site CoinDesk, the price of the digital currency surged from
$7,100 in January to about $10,724 in the year hit by the coronavirus pandemic. The
digital currency fell below $5,000 during the recession in March.
“We believe Bitcoin has the potential to become a more ubiquitous currency in
the future,” Square Chief Financial Officer Amrita Ahuja said in a press release.
We want to learn and participate, and this investment is a step in that journey for
companies building products on a more inclusive future.”
https://www.cnbc.com/2020/10/08/square-buys-50-million-in-bitcoin-says-
cryptocurrency-aligns-with-companys-purpose.html
Square founder and CEO Jack Dorsey is a proponent of digital currencies, saying
cryptocurrencies will eventually become the world's "single currency" in 2018. He said
that could take up to 10 years.
Bitcoin has been characterized by volatility in its 11-year existence. Due to its high
transaction costs, it is rarely used as a means of everyday payment. some supporters
see it as a store of value or “digital gold”. He was down more than 73% in 2018, so this
global hedging use case seemed unlikely. However, some believe the 2019 and 2020
gains were a hedge against the then-US-China trade war and the current coronavirus
pandemic.
Since 2018, Square has offered customers the ability to buy Bitcoin through the Cash
App. Chamath Palihapitiya, an outspoken tech investor, told CNBC on Tuesday that
Social Capital uses Bitcoin as a hedge for 1% of its portfolio.
"This is the instrument we use as a hedge," said Palihapitiya. “I don’t think you
trade it, and at least in my opinion, the more people get hung up on and focused
on what price action is, the more confusing and frustrating it confuses and
frustrates you. , just put it away and hope you don't need it anymore," he added.
The analyst consensus approximates that Square will post $1.5 billion in Bitcoin
revenue. These estimates could be different because analysts are not paying
attention to the Bitcoin market. His own estimate is his $2.2 billion, beating
Square's third-quarter bitcoin trading revenue by $600 million.
In the third quarter of 2020, Square reported his $1.63 billion in Bitcoin revenue,
resulting in his $32 million in total profit from Bitcoin products for the quarter.
https://www.coindesk.com/business/2021/02/22/squares-50m-bitcoin-buy-is-now-
worth-253m/