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 in Bitcoin, the company revealed in its financial report for the fourth fiscal quarter on Tuesday.
The company said it bought approximately 3,318 bitcoins, expanding its purchase to 4,709 in October 2020. Square said it represents about 5% of the company’s total assets in late 2020.
Bitcoin was traded for about $ 48,000 after Tuesday’s bell, up almost 62% on the year.
“The investment is part of Square’s continued commitment to bitcoin, and the company plans to evaluate its aggregate investment in bitcoin against its other investments on an ongoing basis,” the company said in its earnings release. Its CEO Jack Dorsey was also an advocate for digital currency.
Companies are increasingly leaning towards Bitcoin as it becomes more popular. Tesla announced earlier this month that it bought $ 1.5 billion in Bitcoins for “more flexibility to further diversify and maximize returns on our cash”.
Spilling in digital currency carries risks due to its volatility. Tesla’s share price is now directly related to Bitcoin price, according to Wedbush analyst Daniel Ives.
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