Jack Dorsey’s Square has made another hefty investment in Bitcoin with $170 million worth of purchases. The company made it public by announcing on Tuesday, stating its intention to add to its expanding position. As a result of the new purchase, Square has now bought a total of 3,318 Bitcoin. This represents 5% of its cash and cash equivalents.
Square also revealed it bought Bitcoin at an average price of $51,235. When Square announced its purchase, Bitcoin was trading at roughly $48,000.
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Square bought Bitcoin worth $50 million last year. When it purchased the Bitcoin last year, the cryptocurrency was valued at a little over $10,000.
With the escalating upward movement of the cryptocurrency this year, the company would have made a massive profit from its investment.
The digital payment company, owned by Twitter chief executive officer Jack Dorsey, has shown immense confidence in the largest cryptocurrency in the world. Dorsey is an ardent Bitcoin enthusiast as he has been vocal about Bitcoin’s impressive value for some time.
“The investment is part of Square’s ongoing commitment to Bitcoin,” Square said. The company also said the plan is to evaluate its aggregate investments in Bitcoin with its other investment regularly.
An instrument for economic empowerment
Bitcoin has been on a downward trajectory the past week, falling from a record high of $58,000 to $58,000.
Square also said that Bitcoin is an instrument of economic empowerment as it offers a way for people to participate in the global monetary system.
Dorsey has also been in the news for his positive comment about Bitcoin investment. He recently donated 1 Bitcoin to a nonprofit organization.
Many other companies have announced or indicated interest to add Bitcoin to their balance sheet. While some have already done that secretly, others like Microstrategy and Tesla have revealed their investments to the public.
While Square was announcing its investment in Bitcoin, it also unveiled its 2020 financial documents.
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