Square Inc. (NYSE: SQ), the San Fransisco-based payments company revealed on Tuesday that it had purchased a further 3,318 bitcoins worth $170 million.
Square bought $170 million worth of bitcoin. In addition, The company said it purchased approximately 3,318 bitcoins, expanding on its October 2020 purchase of 4,709 bitcoins.
Development in Square Inc News
Detailed in Square’s fourth-quarter earnings report for 2020. The company founded in 2009 by Twitter co-founder Jack Dorsey and still 24.4% owned by Jack Dorsey. The bitcoin purchase follows on from a previous bitcoin purchase worth $50 million. Combined, this represents approximately five percent of Square’s total cash, cash equivalents, and marketable securities as of December 31, 2020.
Also read: Bitcoin makes you next Elon Musk
The fourth quarter bitcoin purchases suggest that Square Inc. (NYSE: SQ) paid approximately $51,000 per bitcoin. However, the price of Bitcoin has seen a heavy downturn, falling. It was 16% to below $47,000 before rallying to its current price at the time of writing of $48,130.
The payments giant saw revenue in the final quarter of 2020 more than double to $3.16 billion. Q4’s figures were up from the $1.31 billion recorded a year earlier and surpassed market expectations for revenue of $3.10 billion.
Elon Musk is in row
The latest Bitcoin move by Square follows on from the heightened interest in bitcoin by institutional investors. Earlier this month, Elon Musk’s Tesla’s latest filing with the Securities and Exchange Commission (SEC) revealed that Tesla purchased $1.5 billion worth of Bitcoin.
Square Inc co-founder Jack Dorsey is one of bitcoin’s foremost proponents who has repeatedly shared his enthusiasm for cryptocurrencies, saying it provides an “opportunity to get more people to access to the financial system.
Square shares fell by about 5% in after-hours trading after reporting mixed results. Bitcoin was little changed after Square’s announcement, hovering around $48,000.