Twitter CEO Jack Dorsey’s financial services company Square has doubled down on Bitcoin, and increased its holdings by $170 million in an ongoing effort to diversify its assets.
On Tuesday, prior to revealing its 2020 financial results, Square announced it had purchased approximately 3,318 Bitcoins. The latest cryptocurrency investment brings the company’s Bitcoin holdings to about 5% of its cash and cash equivalents, nearly tripling its prior Bitcoin investment made back in October 2020. At the time, Square purchased $50 million worth of Bitcoin, with the purchase totalling 1% of its assets.
Jack Dorsey, who has long been a proponent of digital currencies, said that Square will continue to keep the option open for additional cryptocurrency investments. “Aligned with the company’s purpose, Square believes that cryptocurrency is an instrument of economic empowerment, providing a way for individuals to participate in a global monetary system and secure their own financial future,” a company statement read, noting that Square will continue “to assess its aggregate investment in bitcoin relative to its other investments on an ongoing basis.”
At the time of the announcement, Bitcoin was trading at around $48,000, before rising to a recent price of approximately $50,000. The digital currency has been relatively volatile over the past week, soaring to a new record-high of $58,000 over the weekend, before a massive sell-off ensued following Tesla CEO Elon Musk’s tweets, where he said the price of Bitcoin and Ether “do seem high.” However, despite the recent price drop, the cryptocurrency still remains 70% higher for the year.
Information for this briefing was found via Square and Twitter. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.