Square has announced that it has bought $50 million worth of Bitcoin. It becomes the second publicly-traded company to do so after MicroStrategy.
October 9, 2020 | AtoZ Markets – Online payment Square, led by Twitter CEO Jack Dorsey, announced Thursday that it has purchased 4709 Bitcoin (BTC) worth $50 million dollars. It is equivalent to 1% of the company’s total assets as of Q2 2020.
Cryptocurrencies are an instrument of “economic empowerment”
“Square believes that crypto assets are a way to gain economic power and provide the world with a way to join the global monetary system, which is in line with the company’s objectives,” the company said in a statement.
“We believe that Bitcoin has the potential to become a more ubiquitous currency in the future. We are developing our products based on an inclusive future (a future in which everyone can participate and not be isolated). For us, this investment is the first step towards that,” said Amrita Ahuja, CFO of Square.
This investment, which Square positions as a mission-based investment, is just a public discussion by CEO Dorsey over corporate responsibilities with CEO Brian Armstrong of Coinbase, a major cryptocurrency exchange.
Last week, Dorsey accused Armstrong of restricting employees from participating in social change-seeking activities in the workplace. CEO Armstrong said it was essential to the company, while Dorsey said it was a hypocritical effort.
“Bitcoin is a direct transformation of the unverifiable and exclusive financial system that has a negative impact on much of our society,” Dorsey tweeted in response to Armstrong’s blog post. did.
Square becomes the second publicly-listed company to invest in Bitcoin after MicroStrategy
Square has also become a technology company that has transformed its retained earnings into Bitcoin, following the NASDAQ-listed company MicroStrategy.
MicroStrategy invested $425 million in Bitcoin as part of its capital allocation strategy. But Square’s Bitcoin investment is far more in line with the company’s identity and services than MicroStrategy.
Square’s Cash App has become an important tool for many individual investors to invest in Bitcoin and is a major source of revenue for the company.
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