Bahnsen Group managing partner David Bahnsen discusses the future of cryptocurrency under new management.
Square Inc has increased its stakes in bitcoin by investing $ 170 million more and Chief Executive Jack Dorsey on Tuesday promised to “double” the payment company’s commitment to the world’s largest cryptocurrency.
“The Internet needs a native currency and we believe bitcoin is it,” said the longtime bitcoin enthusiast and chief executive of social media company Twitter Inc.
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Square bought 3,318 bitcoins in the fourth quarter, increasing acceptance of the digital currency that has been gaining the support of several major investors.
“Because we have bitcoin, our incentives are in line with the game’s appearance,” said Dorsey in a post-profit conference call with analysts.
Square has been involved with the currency for years and its Cash App, a payment service that allows users to trade it since 2018.
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The app had three million active bitcoin customers in 2020, with one million new users buying the currency for the first time in January, the company said.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| SQ | SQUARE INC COM | 256.59 | -11.49 | -4.29% |
In October last year, Square bought about 4,709 bitcoins at an aggregate price of $ 50 million. The price of the currency has since hit record highs, with Tesla Inc investing $ 1.5 billion and Bank of NY Mellon Corp saying it will create a unit to help its clients trade digital assets.
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In its last purchase, Square paid more than $ 51,200 per bitcoin, according to Reuters calculations. However, the currency’s spot price on Tuesday fell more than 13% to less than $ 47,000 amid a broader market slowdown.
The company’s shares fell about 5% after Tuesday’s bell, extending the losses recorded during the session.