Bitcoin Jumps After Square Investment

Square announced this morning that it has purchased about 4,709 bitcoins at an aggregate purchase price of $50 million (which represents about 1% of Square’s total assets at end 2Q 2020).

“We believe that bitcoin has the potential to be a more ubiquitous currency in the future,” said Square’s Chief Financial Officer, 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.”

This sent the price of the cryptocurrency higher, erasing the losses from Trump’s “no deal” tweet…

Source: Bloomberg

Square also says it believes cryptocurrency is “an instrument of economic empowerment and provides a way for the world to participate in a global monetary system.”

As a reminder, Square has previously invested in bitcoin from a product, leadership, and legal innovation perspective, and today adds this financial investment. The company launched bitcoin trading in 2018 with Cash App, which enables the buying and selling of bitcoin. In 2019, the company formed Square Crypto, an independent team solely focused on contributing to bitcoin open-source work for the benefit of all, and also recently launched the Cryptocurrency Open Patent Alliance (COPA), a non-profit organization encouraging crypto innovation and opening access to patented crypto inventions.