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It looks like Square and bitcoin are really complementing each other. After the company had purchased roughly $50 million in bitcoin units, the firm’s stock shares have reached an all-time high, and it looks like bitcoin is beginning to pull itself out of its September doldrums and reach for the stars once again, having hit a price of roughly $11,300 at the time of writing, the highest it’s been in over a month.
Square Stock Reaches Its Highest Peak
Square commented that it initially bought bitcoin because the currency “aligns” itself with the company’s values and goals, and considering the prices of each asset in question, it looks like this may be true. The payment processing company is now reporting its stock shares are averaging about $183.50, the highest they’ve ever been.
Square is operated by Jack Dorsey, who is also in charge of Twitter, the world’s second-largest social media platform after Facebook. Dorsey has always been a big bitcoin fan, going so far as to claim in 2018 that the asset would serve as the world’s “single” cryptocurrency within a ten-year period.
He has also stated that he would pursue a dream of bringing bitcoin and its benefits to Africa by spending anywhere between three and six months traveling the continent, though these plans are no longer clear given that the coronavirus pandemic has spread to virtually every corner of the world, thereby limiting travel.
Still, bitcoin is growing thanks to newfound support from Square. In a recent whitepaper, the company took the liberty of discussing how and why it purchased so much of the asset. The transaction occurred through an over-the-counter market. This was done to ensure privacy and to prevent the price from slipping while the purchase occurred.
The whitepaper explained:
We negotiated a spread on top of a public bitcoin index and executed trades using a Time-Weighted Average Price (TWAP) over a predetermined 24-hour period with low expected price volatility and high market liquidity.
Two Assets Working In Tandem
In addition, Square has commented that it enforces insurance to keep its money safe from both negative influences inside and outside its work environment. This can go a long way considering the recent bitcoin hack on Twitter – Jack Dorsey’s second company – likely occurred through the hands and efforts of employees. Evidence suggests that the attack was partially an inside job, and thus security is likely to be revamped in the future to prevent such attacks from occurring again.
Nevertheless, bitcoin was traveling through the doldrums all throughout September. The currency lost more than $2,000 from its price during the first few days of that month, but now it appears bitcoin is edging its way back to the top. Yesterday’s climb saw it shoot past the $11,000 mark, while today, $11,360 is the currency’s new October high point.