Square – the payment firm owned and run by Twitter CEO Jack Dorsey – has announced that it will not be buying anymore bitcoin in the coming future.
Square Says It Won’t Be Buying Anymore BTC Anytime Soon
Square is a huge company, not just for all the business it does, but also because it is one of the first institutions to pledge official support for bitcoin and purchase a large wad of it. The company ultimately bought more than $50 million worth of the world’s number one digital currency in late 2020, only to follow this up a few months later in 2021 with an additional purchase of more than $120 million, thereby bringing the amount of BTC the company owned to approximately $170 million at press time, and that is not including the gains it has likely experienced since then.
However, the firm has made it clear that bitcoin remains too vulnerable to price swings at the time of writing, and executives do not want to take anymore chances that they could lose out on profits. While the firm has mentioned it is not done learning about bitcoin, its investment options are laying low for the time being.
Amrita Ahuja – the chief financial officer of the enterprise – explained in an interview:
We do not have any plans at this point to make further purchases… I think we would be customer led. As we see the evolution of the bitcoin product or crypto products in general, I think we will make further assessments at that point.
Bitcoin initially reached its highest peak back in April after it was announced that crypto exchange Coinbase would go public on the Nasdaq. Following this move, bitcoin struck a price of approximately $64,000 per unit, though the momentum did not last. The currency later fell into the mid-$50,000 range, where it has seemingly hovered ever since.
However, Elon Musk recently delivered a blow to the world of digital currency after he announced that his company Tesla would no longer go forward in accepting bitcoin payments for goods and services. This ultimately sent BTC into a downward spiral, and at press time, it is trading for just over $49,000. This is about $15K less than its April high.
More Environmental Issues…
To be fair, respect for bitcoin remains high in the Square community, though Ahuja stated that there was also heavy concern over the amount of environmental damage the extraction process behind bitcoin could allegedly cause. She stated that bitcoin needs heavy innovation when it comes to renewable energy and mentioned:
There is a broader supply chain question around how renewables and clean energy become a greater part of the blockchain in general, and a greater part of the overall mining and transaction network. It is the overall fixed footprint of the network that we need to address.