Square Inc. just posted its fourth quarter and full-year 2020 results in the finance section of its investor relations site at Invest.squareup.com and submitted the results to the Securities and Exchange Commission.
From the report, it is evident that Square recently made a large investment in Bitcoin, tripling its latest investment in cryptocurrency, it has purchased tokens worth $170 million.
Square’s Commitment to Bitcoin
The company confirmed a purchase of about 3,318 bitcoins, adding to its 4,709 purchases in October 2020. The figures represent about 5% of the company’s combined assets at the end of 2020.
On the income statement, the company said the investment was part of Square’s ongoing commitment to Bitcoin, and the company plans to evaluate the total current investment in Bitcoin versus other investments. Its CEO, Jack Dorsey, is also a supporter of digital currencies.
He continued to express his belief that the internet is a local currency saying that it would likely equitably empower more people. They are doing a lot to ensure this in terms of product, open-source development, and an open patent perspective. And by the company owning bitcoin, the incentives are tailored to the in-game theme.
In 2020, more than three million customers bought or sold bitcoin on the Cash app, and in January 2021, one million bought bitcoin for the first time. The company currently has 36 million users using the Cash application. In the fourth quarter of 2020, Bitcoin volume per customer increased by more than 2.5 times compared to 2019.
While most of the questions Dorsey asked about Bitcoin were posed by Wall Street analysts, a particular indicative value was posed by one of the retail customers companies. He asked about what Square will do to be more transparent about using Bitcoin, to which Dorsey said that they plan on adding more educational resources.
Institutions are Opening up to Bitcoin Investments
Square first announced a large bitcoin investment in October last year when it bought $50 million worth of tokens when the bitcoin price was over $ 10,000. One Bitcoin cost is currently just under $50,000, after falling greatly under the $56,000 mark earlier this week after a crypto market crash.
Companies are increasingly leaning towards Bitcoin as it is expanding. Tesla announced earlier this month that it had purchased $1.5 billion worth of BTC to allow for more flexibility for further diversification and maximum returns on our money. Daniel Ives, an analyst at Wedbush, said the current price of Tesla’s shares is directly related to bitcoin costs.
Square is hosting a conference call and earnings webcast at 2:00 p.m. Pacific time/5:00 p.m. Eastern time today aimed at discussing the financial results.