Jack Dorsey, executive director at Twitter Inc. and Square Inc., speaking at an Empowering Entrepreneurs event at Ryerson University in Toronto, Ontario, Canada, on Tuesday, April 2, 2019.
Cole Burston | Bloomberg | Getty Images
Square bought $ 170 million worth of Bitcoin, the company revealed in its fourth-quarter financial report on Tuesday.
The company said it acquired about 3,318 bitcoins, expanding to its acquisition of 4,709 as of October 2020. Square said it accounted for about 5% of the company’s total assets at the end of 2020.
Bitcoin traded on Tuesday after about $ 48,000, up nearly 62% a year.
“The investment is part of Square’s ongoing commitment to bitcoin, and the company intends to continuously evaluate its aggregate investment in bitcoin relative to other investments,” the company said in a statement of revenue. Its CEO, Jack Dorsey, was also a digital currency advocate.
Companies are leaning more and more towards Bitcoin, as it becomes more popular. Tesla announced earlier this month that it had bought $ 1.5 billion worth of Bitcoin for “more flexibility to diversify and maximize the return on our cash.”
The pouring into digital currency presents risks, due to its volatility. Tesla’s share price is now directly linked to the Bitcoin price, according to Wedbush analyst Daniel Ives.
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