Square – which is owned and run by Jack Dorsey of Twitter fame – has announced it just purchased as much as $50 million in bitcoin. The company says that bitcoin represents what it’s all about, and that it’s looking to assure bitcoin always has a place on the world’s financial ladder.
Square Just Added BTC To Its Portfolio
Thus far, the amount of bitcoin that was purchases represents roughly one percent of the total assets owned by Square as of the end of the second quarter this year. The company explained in a statement:
Square believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose.
CEO Jack Dorsey has always been a major bitcoin advocate, stating about two years ago that the world would soon find itself with only one currency – bitcoin – in about ten years. In addition, he stated in mid-September that bitcoin was the world’s primary internet money, and that nothing would ever rival the asset. He commented:
I can’t see that changing given all the people who want the same thing and want to build it for that potential… The internet is something that is consensus driven and is built by everyone, and anyone can… change the course of it. Bitcoin has the same patterns. It was built on the internet.
Lastly, the company recently paved the way for customers to purchase bitcoin and cryptocurrency units this year and diversify their portfolios with a new cash app.
Amrita Ahuja – the chief financial officer of the company – explained in a recent interview:
We believe that bitcoin has the potential to be a more ubiquitous currency in the future. 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’s massive bitcoin purchase follows in the footsteps of several other companies and institutional players that have been adding bitcoin and cryptocurrencies to their portfolios. Perhaps the biggest one in recent days was MicroStrategy, which at the time of writing, claims to have purchased more than $400 million in BTC through two separate buys.
The company’s CEO Michael Saylor explained that the currency was not purchased for speculative reasons, but because he and his staff legitimately think bitcoin is safer than gold and fiat, and he’s looking to remain financially stable in the future.
A Lot of Companies Are Buying
Chamath Palihapitiya – a technology investor – recently explained to CNBC that his company also has about one percent of its total assets in BTC, stating:
This is an instrument we use as a hedge… You buy it, you hold it, you put it away, and you hope that you never need it.