Bitcoin investments of a software manufacturer MicroStrategy caused a stir in the past. And this year too, Tesla surprised everyone with its billion-dollar investment in the leading cryptocurrency. However, a third company joined the ranks of major investors with its relatively young payment service Square a few months ago.
After Square initially invested $50 million in Bitcoin (BTC), the American payment service is now adding another $170 million. In addition to a hoped-for increase in price, Square is also planning to integrate cryptocurrencies as a payment option on its platform. In the short term, however, the latest investment is unlikely to pay off, as the Bitcoin rate fell slightly towards the middle of the week.
Square Is Investing Huge Sums in Bitcoin
Also due to numerous companies that have invested millions or even billions in Bitcoin in recent months, the price of the cryptocurrency developed by Satoshi Nakamoto rose to a new record level. At its peak, the BTC price was nearly $60,000. An American company Square Inc is one of these companies, which served as a major factor in the price increase. The company, led by Jack Dorsey, co-founder, and CEO of Twitter, specializes in financial and payment services. Square sells its own solutions at software and hardware level and is particularly popular with private individuals and small companies. The San Francisco-based company started its service in 2010 and went public in 2015.
In the recent past, Square came out as a Bitcoin enthusiast. The company invested $50 million in the largest cryptocurrency by market cap last year. After the investments from the past paid off and Square was able to show strongly growing sales figures, it was decided to make another investment. On Tuesday this week, the Jack Dorsey-led company announced that it had acquired 3,318 BTCs for an additional $170 million. As Square announced after the US market closed, the payment service provider describes the purchase as a ‘part of an ongoing commitment to the cryptocurrency’.
Square isn’t only planning an increase in value through its investment, but rather cryptocurrencies should become a part of its own platform in the future. The purchase of the leading cryptocurrency can therefore also be interpreted as a commitment to Bitcoin. As a result, the company’s securities fell — despite strong corporate figures — by around 7 percent. Bitcoin’s price also fell below $50,000.
The American payment service provider Square has already invested $50 million of its cash reserves in Bitcoin in the past. But that’s not all. After the successful fiscal year 2020, the San Francisco-based company announced that it has invested an additional $170 million in Bitcoin.
According to the total sum invested, Square thus rises to the premier class of large investors. Only American companies Tesla and MicroStrategy invested more money in the leading cryptocurrency. Including the latest investment, Square has now acquired BTC worth $220 million. It can therefore be assumed that the company firmly believes in BTC price increase in the future.