Jack Dorsey, CEO of Twitter Inc. and Square Inc., speaks during 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 announced in its fourth quarter financial report on Tuesday.
The company announced that it bought around 3,318 bitcoins, expanding the purchase of 4,709 in October 2020. Square said it made up about 5% of the company’s total assets at the end of 2020.
Bitcoin traded around $ 48,000 after Bell Tuesday, up nearly 62% over the year.
“The investment is part of Square’s ongoing commitment to Bitcoin. The company plans to continuously evaluate its total investment in Bitcoin versus its other investments,” the company said in its earnings announcement. Its CEO, Jack Dorsey, was also a digital currency advocate.
Businesses are increasingly leaning towards Bitcoin as it becomes more mainstream. Tesla announced earlier this month that it had purchased $ 1.5 billion worth of Bitcoin to “have more flexibility to further diversify and maximize the returns on our cash.”
Pouring it into the digital coin carries risks due to its volatility. According to Daniel Ives, an analyst at Wedbush, Tesla’s share price is now directly linked to Bitcoin price.
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