Square bought Bitcoin BTC for $170 million

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Square bought Bitcoin BTC for $170 million

Square, a company founded and run by Twitter CEO Jack Dorsey, has announced that it has bought Bitcoin BTC for $170 million.

Listed on Nasdaq, Square Inc. (NYSE: SQ) bought 3,318 BTC, which makes a Bitcoin token with a purchase price of $51,000.

Like Tesla, who bought BTC for $1.5 billion, Square is therefore following in the footsteps of the automaker by placing around 5% of its cash in Bitcoin.
Square had already bought $50 million worth of BTC in October 2020.

With a Bitcoin price that has just fallen, Square is therefore losing out on its investment for the moment, unlike Tesla which has already made a considerable potential profit on its purchase of BTC.

Jack Dorsey, CEO of Square but also CEO of Twitter, is a fan of Bitcoin and cryptocurrencies as we have seen in many articles.

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He recently started a development fund for Bitcoin with rapper Jay-Z.

So it made sense for him to follow in Elon Musk’s footsteps and invest a portion of the capital of one of his companies in BTC, Twitter is also considering this possibility but has not yet made a decision.

Square company is actively involved in selling Bitcoin to individuals through its Cash App, last December American rapper Megan Thee Stallion distributed $1 million in BTC on Twitter to promote this app.

Over 4 million customers bought or sold bitcoin on the Cash App in 2020, this activity has been a growth accelerator for the Square company.

This new acquisition of BTC by this large company will certainly motivate other companies to do the same, a trend which is therefore expected to develop in the future, resulting in a BTC price which should continue to rise in the future.

A Bitcoin price currently around $50,000 on Kraken.

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