- Following Square’s acquisition of Afterpay, Morgan Creek Digital co-founder and Bitcoin proponent Anthony Pompliano believes the company’s worth may rise to $1 trillion
- Square has a market capitalization of $122.72 billion, according to Yahoo Finance
- On August 1, Jack Dorsey’s crypto-friendly payments company Square announced that it will acquire Afterpay using Square common stock
Following Square’s acquisition of Afterpay, Morgan Creek Digital co-founder and Bitcoin proponent Anthony Pompliano believes the company’s worth may rise to $1 trillion. On the same day, it reported $2.7 billion in Q2 income from Bitcoin sales on its Cash App, Square, led by CEO Jack Dorsey, announced the purchase of the Australian buy now pay later (BNPL) firm for $29 billion.
On August 4, Pomp discussed the move on his Best Business show, which was then uploaded to YouTube under the somewhat clickbaity title Square is going to be valued at $1 trillion dollars. He was far more conservative in his estimates throughout the video. Due to the combined potential of both companies, Pomp believes that a two-to-five-fold increase in value for Square is a feasible possibility. Square has a market capitalization of $122.72 billion, according to Yahoo Finance.
If the integration goes well, and the merger of these two businesses works out the way Square and Afterpay want it to, he added, it will produce a very, very intriguing company for Square to continue to expand worldwide and into new demographics. Pomp stressed that Afterpay’s $29 billion valuations were based on 100,000 associated merchants and that expanding Afterpay’s BNPL services to the 70 million users of Square’s Cash App, as well as the 2 million Square merchants, could significantly increase Square’s value that one could essentially claim that $100,000 brought one to a valuation of $29 billion. If one scales it up to two million people, one might not get a 20X return on investment, but might you get two, three, four, or five times the return? Absolutely.
On August 1, Jack Dorsey’s crypto-friendly payments company Square announced that it will acquire Afterpay using Square common stock. In the first quarter of 2022, the transaction is scheduled to be paid out. According to TradingView statistics, Square stock (SQ) has climbed by 8% since the announcement, rising from $248 on July 30 to roughly $269 today, while Afterpay stock (APT) has increased by 34%, rising from $95 AUD to $128 AUD in the same time frame.
Square also released a second-quarter report on August 1 that showed a 200 percent year-over-year (YoY) rise in Bitcoin revenue for Q2, with BTC services accounting for $2.72 billion in revenue. Square’s total gross profit increased 91 percent year over year to $1.14 billion in Q2, while Cash App produced a gross profit of $546 million, up 94 percent year over year. Following Square’s acquisition, it’s unclear whether Afterpay would try to include crypto services into its business model; however, BNPL competitor ZIP said in July that it plans to provide crypto trading in Australia and the United States within a year.