Jack Dorsey, CEO of Square, decides to buy 3,318 Bitcoin which are worth $170 million. The interest of the company in the potential asset and prospect of the flagship cryptocurrency has grown in past months as their previous purchase was in October of 2020, which involved buying 4,709 coins of the leading crypto. This was worth about $50 million at the time of purchase. The American mobile payment company believed the value and worth of Bitcoin to be promising for the company. On average, Square bought Bitcoin at a fair price of $51,235.
Square’s Interest in Bitcoin Grows
The first investment of Square in the leading digital asset was made at an average of $10,617 per Bitcoin. This deal rewarded Square very handsomely as, in just four months, the financial services company received 376% returns. The price of Bitcoin might have increased a lot more since October but Square still believed that investing in Bitcoin will pay off which led them to their second enormous deal with the top cryptocurrency. The merchant service company’s Bitcoin assets including total cash and cash equivalents account for approximately 5%.
Jack Dorsey’s Fondness for Bitcoin
Dorsey has been an admirer of cryptocurrency for a long time. For the first time, the Square included the Bitcoin trade option in their cash app in 2018, a time when Bitcoin was fluctuating within the range between $3,000 and $6,000, is a profound example of his devotion to Bitcoin and crypto.
Dorsey has also developed a Bitcoin trust consisting of 500 Bitcoin, partnering with Jay-Z. This trust was worth $24 million at that time and the fund was specifically oriented for India and Africa. The co-founder and CEO of Twitter, Jack Dorsey, recently made a generous donation to Brink, which is a non-profit seeking organization. Brink aims to help make the democratic process feasible for people with disabilities using technology and behavioral science. The technology entrepreneur considers Bitcoin’s whitepaper as poetry and believes it to be one of the most influencing works in the past 20, 30 years.
Michael Saylor’s MicroStrategy has also invested heavily into Bitcoin but their market capitalization is nothing compared to Square’s. The market capitalization of MicroStrategy is $6.62 billion while Square’s is $115.70 billion.