Square Adds $170 Million In Bitcoin To Enable “Economic Empowerment”
Building on the list of recent companies to add crypto to their reserves, or embrace as a payments solution, Jack Dorsey’s other company – Square – reportedly added $170 million of bitcoin to its existing $50 million reserves.
Square also announced today that it has purchased approximately 3,318 bitcoins at an aggregate purchase price of $170 million.
Combined with Square’s previous purchase of $50 million in bitcoin, this represents approximately five percent of Square’s total cash, cash equivalents and marketable securities as of December 31, 2020.
Aligned with the company’s purpose, 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 investment is part of Square’s ongoing commitment to bitcoin, and the company plans to assess its aggregate investment in bitcoin relative to its other investments on an ongoing basis.
And Bitcoin rebounded modestly on the news:
Dorsey’s average entry price for this latest quarter’s bitcoin buys was $53,125, meaning they are underwater on the crypto position for now.
As an aside, Square’s bitcoin revenue came in at $1.76bn (less than the expected $1.87bn).