Square bullish on Cryptocurrency, Invests $50 Million in Bitcoin

Ritika Sharma
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.
  • Square said it strongly backs the potential that bitcoin holds to be a more ‘ubiquitous currency in the future’
  • The company has also launched an independent Square Crypto in the same year
  • Company purchased $250million bitcoin by MicroStrategy, making it a second traded company to make a be

The FinTech payments company Square is backing big time on Cryptocurrencies by buying 4,709 bitcoins worth $50million. Square said it strongly backs the potential that bitcoin holds to be a more ‘ubiquitous currency in the future’. Stating that cryptocurrencies in future will be an instrument that will provide a way for everyone to participate in the global monetary system.

It is estimated that the purchase of 4709 bitcoins represents about 1 per cent of total belongings ending the second quarter of 2020.

Soon after the announcement from Square, the Bitcoin’s prices saw a spike as $10,962 before settling to $10,890.  

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Source: TradingView

Amrita Ahuja, CFO, Square in a release said as the adoption of the cryptocurrency grows the company intend to learn and participate in a disciplined way. The company is building products based on a more inclusive future, this investment is a step on this journey. The company believes in empowering people to use more and more cryptocurrency.

This is not the first time that Square has shown its interest in the leading cryptocurrency. Earlier in 2018, Square invested in Bitcoin and had introduced trading with its Cash App. The company has also launched an independent Square Crypto in the same year. Square has also launched the Crypto Open Patent Alliance (COPA).

Jack Dorsey, CEO and Founder, Square is a staunch supporter of cryptocurrency and believes that digital currency will eventually become the single currency of the world in the future. Founded in 2009 in Bengaluru, Square has offices in the US, Canada, Japan, Australia, Ireland, Spain and the U.K.

The company purchased $250million bitcoin by MicroStrategy, making it a second traded company to make a bet. The purchase amount to a long-term bullish bet on Bitcoin. The purchasers can purchase bitcoin through the company’s MoneyApp.

Bitcoin has been marked by volatility in its 11-year existence. Some feel that bitcoin is worth like a ‘digital gold’. That worldwide fence use case appeared unlikely in 2018 after it ended the year down over 73%, nevertheless, some attribute its uptick in 2019 and 2020 to hedge towards the U.S.-China commerce conflict and now COVID-19 pandemic.

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