Bitcoin (BTC) price is trading about 3% higher on the day after fintech business Square, founded by Twitter CEO Jack Dorsey, announced it increased its investment into the world’s largest cryptocurrency.
Jack Dorsey Playing a Long Game
It was announced yesterday that Square, a major fintech company, has increased its holdings of Bitcoin by buying $170 million worth of BTC.
According to their latest earnings report, Square purchased about 3,318 BTCs to continue investing in the largest cryptocurrency. In October 2020, Jack Dorsey’s fintech business bought 4,709 BTCs.
Following the latest investment into the Bitcoin cryptocurrency, the fintech business has total BTC holdings equivalent to about 5% of the company’s total assets at the end of the last year.
“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. The investment is part of Square’s ongoing commitment to bitcoin, and the company plans to assess its aggregate investment in bitcoin relative to its other investments on an ongoing basis.” the company said in its Q4 earnings release.
For Q4 ending December 31, 2020, the fintech company said it earned $0.32 per share on revenue of $3.16 billion to top a forecast of a profit of $0.24 per share on revenue of $3.09 billion expected from Wall Street.
"In 2021, we are focusing our investments on customer acquisition and product innovation. We have achieved attractive returns on our sales and marketing investments as customers have turned to our ecosystems to help them in dynamic environments, and we intend on continuing to expand and strengthen our product offerings," the company said in a statement.
The fintech business first invested in BTC to allow its customers a different method to transact on the platform. In 2020, the fintech company business said that over 3 million customers purchased or sold Bitcoin on the Cash App, its flagship product. Bitcoin revenue increased nearly tenfold to $1.76 billion, from $177.6 million a year ago.
Cash App has been used by more than 80 million customers at some point, Square said.
Square, a fintech business founded by Twitter CEO Jack Dorsey, bought $170 million worth of BTC in Q4, with the largest cryptocurrency now representing about 5% of the company’s total assets at the end of the last year.
Luigi Wewege is the Senior Vice President and Head of Private Banking at Caye International Bank. Outside of the bank, he serves as an instructor at the FinTech School which provides online training courses on the latest technology and innovation developments within the financial services industry. Luigi is also the published author of "The Digital Banking Revolution."