Square Buys Bitcoin worth $50 Million

Square Inc., a payments company by Jack Dorsey has recently made a huge bet on Bitcoin. The Twitter-founder led company recently bought 4,700 BTC worth about $50 million.

The world’s single currency

Jack Dorsey believes that Bitcoin will be the world’s single currency. His latest bid to buy 4,700 Bitcoins was a part of an investment plan the company earlier shared. After paying off its financial obligations to shareholders, the company aimed to invest around 1{998ff540fe94a59c7c9828c4dd5223100610db67cea90947d11644c77e05f5f4} of his total assets at the end of the second-quarter 2020.

Amrita Ahuja, the chief financial officer of Square explained the reason behind this move. She said that Bitcoin holds the potential to become “a more ubiquitous currency” in the future. She also said that as the adoption of cryptocurrency grows, they also want 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.” She also noted that Bitcoin’s structure ensures that its value only increased with time.

Dorsey’s optimism on Bitcoin

Square founder and CEO Jack Dorsey is highly optimistic about Bitcoin and is one of the most vocal leaders in the tech industry to support the project. He has noted in the past that cryptocurrencies could provide an opportunity that helps in bringing more people into the financial system. He has also called it a transformational technology that could become the world’s single currency in 10 years.

Square created a capital allocation strategy after declaring its Q2, 2020 financial results. It had made space for Bitcoin investments in the plan apart from other traditional investment choices. As institutional interest in cryptocurrencies is growing, the price of Bitcoin has also remained high. It sustained a rally in the past few weeks.

PayPal Holdings, another payment company, is also eyeing a crypto strategy. It is reportedly looking forward to bring crypto options to its 320 million users.