Jack Dorsey’s Square Purchases $50 Million Worth Of Bitcoin

Minutes ago as of this article’s writing, leading financial technology company Square
SQ
revealed that it had deployed $50 million of capital on its balance sheet to purchase Bitcoin. The company purchased over 4,709 coins, reports indicate.

As of the end of the second quarter of 2020, $50 million represents around one percent of Square’s total assets. The company currently has $2.69 billion worth of cash, data from Yahoo Finance shows.

Square’s Chief Financial Officer, Amrita Ahuja, made the following comment on the news:

“We believe that bitcoin has the potential to be a more ubiquitous currency in the future. As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.”

This wasn’t exactly unexpected: Jack Dorsey, CEO of both Square and Twitter, has long been a supporter of Bitcoin. He has branded the leading cryptocurrency the most likely asset to become the “internet’s native currency.”

Square itself has also long been a supporter of Bitcoin. Since the last cryptocurrency bull market, Square’s Cash App has allowed users to purchase and sell BTC within the application.

The fintech company also has a branch called Square Crypto, which supports development in the Bitcoin space by directly hiring and distributing grants to programmers and designers. At the start of this year, Square Crypto rolled out a Lightning Development Kit to ease the integration of the Lightning Network technology into wallets and other services.

Following MicroStrategy’s Lead

Square’s decision to deploy $50 million into Bitcoin comes after MicroStrategy, an American business services company, made a similar move in August and early in September.

In a move led by MicroStrategy CEO Michael J. Saylor, MicroStrategy made two bulk purchases of Bitcoin, deploying approximately $425 million in the process. The company purchased over 37,000 coins in the process. This move was notable as it represented a large portion of the company’s cash reserves.

A publicly-listed company, MicroStrategy has a market capitalization of $1.48 billion.

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