Jack Dorsey, CEO of Twitter Inc. and Square Inc., speaking at an Empowering Entrepreneurs event at Ryerson University in Toronto, Ontario, Canada on Tuesday, April 2, 2019.
Cole Burston | Bloomberg | Getty Images
Square bought $ 170 million worth of Bitcoin, the company revealed Tuesday in its fourth-quarter fiscal year financial report.
The company said it had bought about 3,318 bitcoins, an extension of the purchase of 4,709 in October 2020. Square said it will represent about 5% of the company’s total assets by the end of 2020.
Bitcoin was trading around USD 48,000 on Tuesday after the bubble, up nearly 62% over the year.
“The investment is part of Square’s ongoing commitment to bitcoin, and the company plans to continuously assess its total investment in bitcoin against its other investments,” the company said in its earnings report. The CEO Jack Dorsey was also a supporter of the digital currency.
Businesses are increasingly leaning on Bitcoin as it becomes more mainstream. Tesla announced earlier this month that it has purchased $ 1.5 billion worth of Bitcoin for “greater flexibility to further diversify and maximize returns on our cash.”
Pouring into the digital currency carries risks due to its volatility. According to Wedbush analyst Daniel Ives, Tesla’s stock price is now directly linked to the price of Bitcoin.
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