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Square doubles down on bitcoin with an additional $170 million investment

  • Square Inc. spends $170 on acquiring additional bitcoins.
  • The company now has 5% of its cash reserves and equivalence in bitcoin.
  • Square's shares fell by about 5% in after-hours trading due to mixed results.

Financial services company Square Inc. has doubled down on its bitcoin bet after forking more money for the digital asset.

Square revealed in its fiscal fourth-quarter financial report that it had spent $170 million to buy 3,318 additional bitcoins.

$170 million on more bitcoins

Square previously bought 4,709 bitcoins last October at an aggregate price of $50 million when a single coin was exchanging hands for a little over $10,000.

The combined purchases of bitcoin “represents approximately five percent of Square’s total cash, cash equivalents and marketable securities as of December 31, 2020.”

At the time of initial investment in bitcoin, the digital asset represented about 1% of the company’s cash and cash equivalents.

Co-founded and led by bitcoin advocate Jack Dorsey, Square stated that it considers cryptocurrency as a vehicle for economic empowerment that provides a way for people to be a part of the global monetary system and “secure their own financial future.”

The company will continually assess its bitcoin investment relative to other investments.

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,” the company said.

Square’s stock price fell by around 5% in after-hours trading after it reported mixed results.

The buying continues

Major companies have played a major role in fuelling bitcoin’s current bull run by betting big on the leading cryptocurrency.

Bitcoin, although already in the limelight due to its rally, gained further prominence when carmaker Tesla announced the purchase of BTC worth $1.5 billion.

Within a short few weeks, the carmaker posted paper profits of more than $500 million.

Tesla is just one of them. Business intelligence firm MicroStrategy has spent more than $1 billion buying bitcoins and recently raised $600 million to buy additional BTC.

MicroStrategy CEO, Michael Saylor, who has become a crusader in urging corporate leaders to convert part of the balance sheet into bitcoin, took note of Square’s purchase on Twitter.

Jack Dorsey bitcoin donations

Dorsey recently donated 1 BTC to Brink, a not-for-profit organization working on bitcoin’s technological advancements.

Dorsey teamed up with rapper Jay Z and pledged 500 BTC toward an endowment that will initially fund teams in Africa and India working on bitcoin development.

At the start of the month, Dorsey made a cash donation of $1 million to Coin Center, a crypto think tank.

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