Payment Company Square Purchases Bitcoin Worth Nearly $170M

Square, an American-based payment company has made another Bitcoin purchase five months after its first one. The bitcoin purchase amounted 3,318 BTC, which is currently worth $167 million to its books on Tuesday.

Square Shows Support for BTC with Additional Purchase

The announcement was made during its fourth quarter and full-year report on 2020. However, it seems there is a mistake with the value of BTC Square reported. At 4.00 pm New York time when the company made the announcement, Bitcoin was at around $48,000.

According to the payment company, this second Bitcoin purchase helps to show its commitment to the crypto. “Square believes that cryptocurrency is an instrument of economic empowerment, providing a way for individuals to participate in a global monetary system and secure their own financial future,” the press release reads.

The company also plans to evaluate its investment in Bitcoin, and compare it to its other investments on an ongoing basis. However, the company’s investment in Bitcoin is looking good, as it has made a significant profit in 6 months.

In October 2020, Square made an initial purchase of Bitcoin with 50 million dollars. With the current price of Bitcoin today, that investment has grown almost 5 times as it is with $224 million today. This second purchase of about $170 million, coupled with the first purchase, brings the company’s Bitcoin holding to 5%.

BTC Equals 5% of Square Holdings

This means that BTC now holds 5% of all Square’s cash, cash equivalents, and marketable securities in 2020. The payment company now has about $394 million in Bitcoin and has $4.4 billion in cash. The payment company likely intends to use Bitcoin as a reserve asset, as it has been proven to be a good hedge against inflation.

More companies are showing interest in Bitcoin, particularly in Bitcoin. This month, Tesla announced that it had made a 1.5 billion dollar purchase of Bitcoin. MicroStrategy, Grayscale, and Morgan Stanley have all made bitcoin-related purchases over the last year.