San Francisco based Payments Company Square has made the headlines yet again as it seems to be stocking up on Bitcoin. According to an announcement, Square has now purchased 4,709 bitcoins, worth $50 million, representing 1% of the company’s total assets.
The company said in a statement:
“Square believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose.”
The company characterizes this investment one that is mission-driven, amidst a time when CEO Jack Dorsey is amidst a public spat with Coinbase CEO Brian Armstrong, over corporate responsibility and involvement in the broader societal issues currently going on.
In a statement, Square’s Chief Financial Officer, Amrita Ahuja said:
“We believe that bitcoin has the potential to be a more ubiquitous currency in the future. As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.”
The investment makes Square the second technology firm that has put faith in Bitcoin and made major investments in the world’s number one cryptocurrency.
Earlier this year, business intelligence firm MicroStrategy made a massive $425 million investment, purchasing more than 21000 Bitcoin as a part of its latest capital allocation strategy following its financial results for the second quarter of 2020.
Square and the Crypto Industry
However, Square’s investment doesn’t come as surprise to the community, especially since Dorsey himself is one of the biggest advocates of Bitcoin and its underlying technology, blockchain.
Square has been in close contact with the crypto industry, and has even fuelled crypto adoption with its Cash App. The popular payment application has become a critical Bitcoin entry point for many new retail investors ever since it enabled Bitcoin-related services in 2018.
Square is also behind Square Crypto, an independent subsidiary that solely focuses on contributing to the bitcoin open-source work for the benefit of all.
Last month, Square Crypto took to its Twitter account to announce the formation of the Cryptocurrency Open Patent Alliance (COPA), an initiative that develops a library of crypto technology patents. All COPA members can use these patents for defensive reasons