Square is the latest company to announce that it has invested in Bitcoin. Elon Musk’s Tesla recently announced it had purchased $1.5 billion worth of the cryptocurrency, signaling a growing trend among major corporations to adopt digital currencies as part of their financial strategies.
During its fourth quarter results of 2020, Square announced that it has purchased 3,318 bitcoins, which are worth $170 million. This is in addition to the $50 million worth of Bitcoin the company had previously purchased in October 2020. This brings Square’s total Bitcoin holdings to approximately $220 million.
Square also announced today that it has purchased approximately 3,318 bitcoins at an aggregate purchase price of $170 million. Combined with Square’s previous purchase of $50 million in bitcoin, this represents approximately five percent of Square’s total cash, cash equivalents, and marketable securities as of December 31, 2020.
Square’s Vision for Cryptocurrency
Square’s investment in Bitcoin is not just a financial maneuver but also a strategic alignment with its broader mission. The company has long been a proponent of cryptocurrency, seeing it as a tool for economic empowerment. Square believes that cryptocurrency provides a way for individuals to participate in a global monetary system and secure their own financial future. This 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.
Aligned with the company’s purpose, Square believes that cryptocurrency is an instrument of economic empowerment, providing a way for individuals to participate in a global monetary system and secure their own financial future. 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.
Implications for the Future
Square’s significant investment in Bitcoin could have far-reaching implications for both the company and the broader financial landscape. By allocating a substantial portion of its cash reserves to Bitcoin, Square is signaling its confidence in the long-term viability of cryptocurrency. This move could encourage other companies to consider similar investments, potentially leading to greater mainstream adoption of digital currencies.
Moreover, Square’s investment strategy could influence how other financial institutions and investors view Bitcoin. As more reputable companies like Square and Tesla invest in Bitcoin, it could help legitimize the cryptocurrency and reduce its perceived risk. This could lead to increased interest and investment from both institutional and retail investors.
Additionally, Square’s commitment to Bitcoin aligns with its broader mission of economic empowerment. By investing in cryptocurrency, Square is supporting the development of a more inclusive financial system that provides opportunities for individuals who may not have access to traditional banking services. This could have a positive impact on financial inclusion and help bridge the gap between the unbanked and the global economy.
You can find out more details over at Square’s website at the link below, and you can also see the company’s financial results for Q4.
Source Square
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