Good news, everyone! – While the cryptocurrency market has been rather amorphous in recent days, a big new bullish (bullish) has just fallen. After the company MicroStrategy last month, it is now Square which proudly announces that it has invested heavily in Bitcoin.
Nearly 5,000 BTC bought in cash
Founded by Jack Dorsey (also creator of Twitter), the Square company aims to simplify electronic payments.
In a press release issued on 8 October, Square announced it bought about 4,709 bitcoins for a total purchase price of $ 50 million .
This investment in the king of cryptos represents around 1% of the total assets owned by Square at the end of the second quarter of 2020.
Since 2018, Square has already offered its customers to buy bitcoin through its Cash App , but this is the first time the company has bought bitcoin for its own financial investment .
“We believe that bitcoin has the potential to become a more ubiquitous currency in the future. As it is adopted, we intend (…) to participate in it in an organized manner. As a company that builds products based on a more inclusive [financially] future, this investment is a step towards that goal. »- Amrita Ahuja, CFO of Square
A white paper on investing in Bitcoin
Rarely, Square has released a whitepaper detailing its cryptocurrency investment strategy invented by Satoshi Nakamoto. Jack Dorsey’s company explains that it wants to protect itself from future economic risks , by reducing its positions in US dollars:
„Given the rapid evolution of cryptocurrencies, and the unprecedented uncertainty from a macroeconomic and monetary policy perspective, we believe the time has come for us to diversify our balance sheet, which is too largely denominated in dollars, and invest significantly in bitcoins. “
To prevent an explosion on the rise in prices of BTC during this important purchase, Square says in its investment whitepaper buying bitcoins its “ over-the-counter “ (OTC), that is to say, mutual will .
The purchase of Square’s 4,709 BTC was thus carried out gradually , over a period of 24 hours .
Square concludes its investment whitepaper by specifying:
“We hope that this explanation of our decision to allocate some of Square’s assets in bitcoin will provide useful information to others who are considering a similar strategy. „