Surprisingly, Square announced the acquisition of 4,709 bitcoins (BTC) for nearly $ 50 million at press time. Jack Dorsey, the company’s co-founder, has long supported bitcoin and cryptocurrencies, and the company’s CashApp allows users to invest in bitcoins.
The news came a few months after another registered company, MicroStrategy, decided to transfer some of the storage to bitcoins. The company currently owns 38,250 BTC, and CEO Michael Sailor has become one of Bitcoin’s most high-profile spokesmen. While MicroStrategy itself is a large company with a market value of $ 1.5 billion, it pales in comparison to Square’s $ 81 billion.
A press release that followed Square indicated that the move was an ideological statement:
“Square believes that cryptocurrency is an economic empowerment tool that enables the world to participate in a global monetary system that aligns with the company’s goals.”
On September 30, Dorsey Coinbase CEO Brian Armstrong accused his apolitical leadership of:
The press release indicated that the investment accounted for approximately 1% of “Square’s assets at the end of the second quarter of 2020.” As of June 30, the company’s total assets were $ 7.8 billion, so the acquisition accounted for approximately 0.64% of the company’s assets.