It’s not like we didn’t know that Square – the financial payment firm owned and operated by Jack Dorsey of Twitter fame – was a bitcoin fan. Dorsey himself has been advocating for bitcoin for the past several years, even going so far as to claim in 2018 that it would be the world’s only currency within ten years. In addition, Square was one of the first institutions to pledge support for the world’s number one digital currency back in October of last year when it purchased approximately $50 million worth of BTC.
Square Has Bought More than $150 Million in BTC
However, it looks like that $50 million really wasn’t enough for the company, as Square has now stepped up and purchased an additional $170 million of the digital currency. Taking a page right out of MicroStrategy’s book, it looks like the company has decided to up the ante on how much bitcoin it owns and has engaged in another major purchase – so big in fact, that it’s about three times larger than the one from four months ago.
This brings the total amount of BTC owned by Square to more than $200 million. While this may appear small when compared to the BTC ownership of firms such as MicroStrategy and Tesla, the number is still important in that it shows institutions are doing all they can to potentially spike interest in bitcoin and get their fingers on it. Clearly, this is an important asset to them, and they’re doing everything to get a hold of it.
The total amount of bitcoins purchased by Square came to 3,318 units. It is estimated that bitcoin now makes up about five percent of the company’s assets. In addition, bitcoin is becoming a large staple for the enterprise’s Cash App, a mobile payment service that permits users to invest in crypto. In a statement, the company claims:
The investment is part of Square’s ongoing commitment to bitcoin, and the company plans to assess its aggregate investment in bitcoin relative to its other investments on an ongoing basis.
Following news of the purchase, bitcoin – which had been struggling and initially fell from about $56,000 per unit to just over $47,000 – added roughly $2,000 to its price and is currently trading for approximately $49,000. Meanwhile, the currency is also garnering acclaim and positive sentiment from figures such as Cathie Wood, the CEO of Ark Investment Management.
These Corrections Are Normal
In a recent interview, she mentions that she is unfazed by the recent price dip bitcoin has experienced and feels that corrections such as these are normal and part of a healthy and growing market. She says:
We’re quite positive on bitcoin. We’re happy to see a healthy correction here. No market is straight up. Everyone should know that.