Block news director Frank Chaparro details what has been happening to bitcoin in recent weeks.
Despite its critics, bitcoin saw a meteoric rise in 2021, as companies embraced the adoption of digital currencies, which led them to make their own investments. On Wednesday, the world’s largest cryptocurrency rose to over $ 50,000.
Below is a summary of the bitcoin FOX Business and the biggest players in the cryptocurrency industry:
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Square
Square announced on Tuesday that it will invest $ 170 million more in bitcoin, as the payment company “doubles down” on its commitment.
“Because we have bitcoin, our incentives are in line with the game’s appearance,” Square CEO Jack Dorsey said in a post-profit conference call with analysts. The company bought 3,318 bitcoins in the fourth quarter, or more than $ 51,200 per bitcoin, according to Reuters calculations.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| SQ | SQUARE INC COM | 237.32 | -19.27 | -7.51% |
The move was built on the basis of 4,709 bitcoins purchased in October 2020 for an aggregate price of $ 50 million.
Square has been involved with the currency for years and its Cash App, a payment service that allows users to trade it since 2018. The app had three million active bitcoin customers in 2020, with one million new users buying the currency through first time in January, the company said.
At Dorsey’s “other company” – Twitter – the social media giant recently considered paying employees in cryptocurrencies if they prefer this form of payment.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| TWTR | TWITTER INC. | 71.92 | -1.25 | -1.71% |
“We did a lot of initial thinking to consider how we could pay employees if they asked to be paid in bitcoin, how we could pay a supplier if they asked to be paid. [paid] in bitcoin and whether we need to have bitcoin on our balance sheet if that happens, “said Twitter financial director Ned Segal CNBC’s “Squawk Box”.
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Tesla
Electric carmaker Tesla announced in a document to the SEC earlier this month that it invested $ 1.5 billion in bitcoin to “diversify and further maximize” the return on its cash. In addition, the company said it hopes to start accepting bitcoin as a form of payment for its cars in the “near future”.
“When the fiat currency has negative real interest, only a fool would not look elsewhere,” explained CEO Elon Musk in a tweet. “Bitcoin is almost as cheap as fiat money. The keyword is” almost “.”
Musk acknowledged being a “bitcoin supporter” when asked about his thoughts on cryptocurrencies during an interview broadcast live on the popular audio chat app Club House on February 1.
“Many friends of mine have long tried to convince me to get involved with bitcoin,” he added.
MicroStrategy
Musk’s decision to add bitcoin to Tesla’s balance came after an exchange he had with MicroStrategy CEO Michael Saylor. In December, his mobile software / business intelligence company said it had accumulated more than $ 1.3 billion in cryptocurrencies.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| MSTR | MICROSTRATEGY | 817.69 | +126.46 | + 18.29% |
Last week, MicroStrategy said it plans to use proceeds from a $ 600 million convertible bond sale to increase its holdings in bitcoin. The notes are due to mature on February 15, 2027.
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Galaxy Holdings
Michael Novogratz’s Galaxy Holdings has also become a major bitcoin player. The asset management company, which focuses on digital currencies, announced during its third quarter earnings report that it had a stake of $ 176.4 million in bitcoin on September 30, including approximately $ 41.2 million held by interests not controllers.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| BRPHF | GALAXY DIGITAL HOLDINGS | 13.7 | +1.04 | + 8.19% |
The former hedge fund hotshot recently told Bloomberg that he predicts that bitcoin will more than double by the end of this year to $ 100,000.
Mogo
Mogo, a Canadian fintech company, is also taking action. The company announced plans in December to make an initial corporate investment of up to $ 1.5 million in bitcoin and that it would consider additional investments in 2021 as it monetises its $ 17 million investment portfolio.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| MOGO | MOGO INC. | 8.46 | +1.38 | + 19.49% |
The initial purchase represents approximately 1.5% of Mogo’s total assets at the end of the third quarter of 2020.
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Meanwhile, other companies, while not making direct investments in bitcoin, have adopted cryptocurrencies in their services:
BNY Mellon
BNY Mellon, the oldest bank in the United States, recently announced that it would be the first global bank to create a “digital assets” service in late 2021.
“BNY Mellon is proud to be the first global bank to announce plans to provide an integrated service for digital assets,” said Roman Regelman, CEO of asset services and digital head of BNY Mellon, in a statement. “Growing customer demand for digital assets, maturity of advanced solutions and improved regulatory clarity present a tremendous opportunity for us to extend our current service offerings to this emerging field. Pending further appraisals and approvals, we hope to start offering these innovative products. shape capabilities later this year. “
MasterCard
Best known for its credit cards, the family name recently announced plans to start supporting certain cryptocurrencies later this year.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| BAD | MASTERCARD INCORPORATED | 367.32 | +16.90 | + 4.82% |
“We are now preparing for the future of cryptography and payments, announcing that this year Mastercard will begin supporting selected cryptocurrencies directly on our network,” the company said in a blog. “This is a major change that will require a lot of work. We will be very vigilant about which assets we will support based on our principles for digital currencies, which focus on consumer protection and compliance.”
Black stone
In January, BlackRock revealed in a SEC filing that it would add bitcoin as an eligible investment to two funds, BlackRock Strategic Income Opportunities and BlackRock Global Allocation Fund Inc.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| BLK | BLACKROCK INC. | 712.10 | +8.94 | + 1.27% |
The world’s largest asset management company said the two funds mentioned will invest only in cash-settled bitcoin futures traded on commodity exchanges registered with the Commodity Futures Trading Commission.
Silvergate
In December, Silvergate bank focused on digital currency announced in its fourth quarter earnings report that its digital currency deposits increased to $ 5 billion on December 31, 2020, compared to $ 2.1 billion in 30 of September.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| SI | SILVERGATE CAPITAL CORP | 140.52 | +10.72 | + 8.26% |
The company’s internal Silvergate Exchange Network (“SEN”) managed 90,763 transactions in the fourth quarter of 2020, an increase of 33%, compared to 68,361 transactions in the third quarter of 2020, and an increase of 530% compared to 14,400 transactions in the fourth quarter of 2019.
The company recently launched a new loan offer called SEN Leverage, which allows its customers to obtain loans in U.S. dollars guaranteed by bitcoin. Silvergate’s CEO Alan Lane said the company expects an increase in demand for the supply offering next year. “
PayPal
In October, PayPal announced that it would launch a service this year allowing customers to buy, sell and maintain cryptocurrencies directly from their PayPal accounts.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| PYPL | PAYPAL HOLDINGS INC. | 266.07 | +1.07 | + 0.40% |
“The move to digital forms of currencies is inevitable, with clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payment system; and the ability of governments to disburse funds to citizens quickly,” CEO of PayPal , Dan Schulman said in a press release. “Our global reach, digital payment experience, bilateral network and strict security and compliance controls provide us with the opportunity and responsibility to help facilitate the understanding, redemption and interoperability of these new instruments of exchange.”
In addition to Bitcoin, PayPal’s service supports Ethereum, Bitcoin Cash and Litecoin directly in PayPal’s digital wallet. The service has already been deployed in the United States and U.S. territories and the company plans to expand the service internationally in the first half of the year.