Square Inc. , a San Francisco-based financial services company , revealed yesterday that it recently purchased 3,318 Bitcoins worth $170 million . Square, founded in 2009 by Twitter co-founder Jack Dorsey ( Dorsey still owns 24.4% of the company), reported its fourth-quarter 2020 earnings yesterday and said the recent Bitcoin purchase is the company 's second , after buying $50 million worth of the cryptocurrency a few months ago
Combined, they represented 5% of the company by the end of 2020.
“The investment is part of Square’s ongoing commitment to Bitcoin, and the company plans to evaluate its overall investment in Bitcoin in the same way it evaluates other investments, on an ongoing basis,” the company in its earnings report. CEO Jack Dorsey is also a supporter of the digital currency.
During the last quarter of 2020, Square saw its revenue more than double, reaching $3.16 billion and beating market expectations for revenue of $3.10 billion.
Square Inc.'s increased revenue was driven primarily by its seller business and Cash App. Cash App allows users to send peer-to-peer payments, as well as transact with Bitcoin, among other things.
Square revealed that more than 4 million customers bought or sold Bitcoin through the Cash App in 2020. The company told shareholders in a letter that:
“Bitcoin revenue and gross profit benefited from increased customer demand, as well as a significant year-over-year increase in the Bitcoin market price“.
Square's recent large-scale Bitcoin purchase confirms the increased interest of large companies in cryptocurrency. Recently, more and more companies are investing in Bitcoin or other cryptocurrencies. A few days ago, Elon Musk, CEO of Tesla, reported to the Securities and Exchange Commission (SEC) that Tesla . bought $1.5 billion worth of Bitcoin
Square Inc. co-founder Jack Dorsey is one of Bitcoin's biggest supporters. He has spoken out in favor of digital currencies many times, saying they "provide an opportunity for more people to gain access to the financial system."
Source: Finance Magnates
