HomeNewsPaypal rival Square has purchased $170 million worth of Bitcoin; has 5%...

Paypal rival Square has purchased $170 million worth of Bitcoin; has 5% of its reserves in BTC

Jack Dorsey has been a huge proponent of Bitcoin and the decentralized future. He’s working on a decentralized version of Twitter with Blue Sky, while his company Square offers a simple way to get Bitcoins for its customers. Not to mention that he recently partnered with Jay-Z to launch BTrust for Bitcoin development focusing on Africa and India. Now, in its quarterly report, the company has announced that it has purchased $170 million worth of Bitcoins. A total of 3,318 BTC has been bought at an average price of $53,125.

Worth noting that Square has previously purchased $50million worth of BTC back in October 2020. Combined with its latest purchase, it has 5% of its cash reserves (as per the quarter ended on December 31st, 2020) in Bitcoin. The quarterly report goes on to mention:

The investment is part of Square’s ongoing commitment to bitcoin, and the company plans to assess its aggregate investment in bitcoin relative to its other investments on an ongoing basis

As per the Q4 report, Square’s Cash App has allowed more than 3 million customers to purchase or sell Bitcoin. More importantly, in January of this year, the app has allowed more than one million people to purchase BTC for the first time. The company also highlights that the Bitcoin volumes per customer increase by up to 2.5x year-over-year in the last quarter of the year 2020, which signifies increased interest.

Tallying up the entire year 2020, the report states that:

For the full year of 2020, Cash App generated $4.57 billion of bitcoin revenue and $97 million of bitcoin gross profit, up 9x and 12x year over year, respectively

With the likes of MicroStrategy, Tesla, and Square purchasing Bitcoins on their balance sheet, it’s only a matter of time till more public companies realize the importance of holding a non-depreciating asset. We’re certainly keen to find out which is the next company to join this club.

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