Jack Dorsey’s Square purchases $50 million worth of bitcoin 

Quick Take

  • Square, Twitter CEO Jack Dorsey’s payment company, has purchased $50 million worth of bitcoin.
  • The investment represents approximately 1% of Square’s total assets as of Q2 2020.
  • Square has become the second publicly-listed company after MicroStrategy to invest in bitcoin. 

Square, Twitter CEO Jack Dorsey’s payment company, has purchased around 4,709 bitcoin at an aggregate purchase price of $50 million, i.e. at an average price of around $10,600 per bitcoin.

Announcing the news on Thursday, Square said “cryptocurrency is an instrument of economic empowerment and provides a way to participate in a global monetary system, which aligns with the company’s purpose.”

The investment represents approximately 1% of Square’s total assets as of Q2 2020.

"We believe that bitcoin has the potential to be a more ubiquitous currency in the future," said Square’s CFO Amrita Ahuja. "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."

Square has become the second U.S.-based publicly-listed company after MicroStrategy to invest in bitcoin.

MicroStrategy has purchased a total of 38,250 bitcoins to date, currently worth $410 million, as part of its capital allocation strategy. CEO Michael Saylor told The Block in an interview last month that bitcoin is the “best money ever created.”

Saylor said, compared to gold and the U.S. dollar, bitcoin is a superior asset for a treasury given it is not deflationary by design.

“Gold is defective in the 21st century,” he said of bullion. "It boils down to a very simple principle. It's going to debase between 2% and 4% a year, certainly over the next hundred years." As for the dollar, Saylor said, the problem is monetary policy expansion and inflation — which comes at the cost of purchasing power.

Saylor also revealed in the interview that 90% of MicroStrategy's treasury balance is in the form of bitcoin.

As for Square, the company has been active in the bitcoin space since 2018 when its Cash App offering enabled buying and selling of the cryptocurrency.

In 2019, the company formed Square Crypto, an independent team solely focused on contributing to bitcoin's open-source work. Most recently, it launched the Cryptocurrency Open Patent Alliance (COPA), a non-profit organization encouraging crypto innovation and opening access to patented crypto inventions.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC