Square, the crypto supporting payment remittance platform founded by Twitter CEO Jack Dorsey, has bought 4,709 Bitcoins (BTC) by investing $50 million. Dorsey is a well-known advocate of Bitcoin and Crypto as a whole. The company’s CashApp facilitates its users to buy Bitcoin.
The news has come around two months after MicroStrategy, a Nasdaq listed entity, chose to convert a portion of its cash reserves into Bitcoin. Presently, the company owns 38,250 BTC, with its CE Michael Saylor becoming one of the most vocal supporters of Bitcoin.
Even though MicroStrategy is a medium-sized enterprise with a market cap of about $1.50 billion, it is much smaller in comparison to Square, which commands a market cap of $81 billion.
In a media release, Square has stated that the step taken complements its ideology:
“Square believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose.”
On the last day of September, Dorsey rebuked Coinbase CEO Brian Armstrong for being too neutral:
#Bitcoin (aka “crypto”) is direct activism against an unverifiable and exclusionary financial system which negatively affects so much of our society. Important to at *least* acknowledge and connect the related societal issues your customers face daily. This leaves people behind: https://t.co/0LMlF1qcmG
— jack (@jack) September 30, 2020
The media release also pointed out that the investment accounts for roughly 1% of Square’s “assets as of the end of the second quarter of 2020.” At the end of June 30, the company had assets worth $7.80 billion. Therefore, the Bitcoin holdings may account for 0.64% of the company’s assets.
