Bitcoin has been on a recent rollercoaster ride. The recent surge caught the attention of Jack Dorsey’s fintech farm Square. As a result, it decided to double its investment in this crypto.
The company invested $220 million in Bitcoin, which is now worth over $470 million. A large part of this rise was because of the big rally with prices over the past month. Yet, Square’s holdings have been positively affected by it too.
Bitcoin has risen nearly 25% in recent weeks, and it’s trading at an all-time high of $62000 per coin. And this is no coincidence. Bitcoin was just under 50K a week ago.
The report in Bitcoin Magazine states that Square holds 8,027 Bitcoins with an aggregate purchase price of $220 million and an average per bitcoin cost of 20.56 lakhs ($27,407).
Square has been buying up Bitcoin with a vengeance. In 2020, they announced the purchase of 4709 Bitcoins at an aggregate price tag of $50 million in October. This was their first acquisition on record! However, not many people are aware that by December 31st, 2020, Square had already spent cash for digital currency. They purchased around 3182 bitcoins at approximately 170 million dollars.
Investments Enjoys Bitcoin’s Gains
The only two investments which have seen double-digit gains this year are MicroStrategy Inc., which had gained 14% since last month (₹2lakh), And Tesla Company’s stocks rose 18%. However, Square’s acquisition may become more valuable when you consider that India has some high demand.
Jack Dorsey, the CEO, and Co-Founder of Twitter has been very adamant about his support for Bitcoin on social media. He often tweets about how much he believes in this cryptocurrency. This could be linked to its bull run just last week.
Recently, Square President Jack Dorsey said that his company is considering venturing into the Bitcoin mining system for individuals and businesses worldwide. “If we do this,” he tweeted last week from their @Square headquarters in San Francisco Bay Area city of Oakland, California, “we’ll follow our hardware wallet model: build-in collaboration with the community.”
Jack seems to have created a thread of tweets to highlight why Square is considering Bitcoin Mining.
The story of Square has been full of innovation and success. In 2009, Dorsey launched the company with his goal being to create an easy way for both business parties to accept payments on their phone or tablet without any hassle.
Square POS is an app that lets you process payments, track inventory in real-time and send invoices. Business owners can also use the Square platform to accept credit cards and cash for their sales transactions on mobile phones or tablets.