Square’s New Bitcoin Acquisition
In a noteworthy move that raised eyebrows across the financial landscape, Square has doubled down on Bitcoin by purchasing approximately 3,318 bitcoins for a hefty sum of $170 million. This brings their total Bitcoin investment to about $220 million, which constitutes around five percent of the company’s cash reserves as of the end of 2020. It seems like Square is playing a long game in the cryptocurrency field!
The Bitcoin Roller Coaster
Bitcoin has been on a wild ride lately. Just last week, the cryptocurrency saw its value drop below the $50,000 mark after peaking at a staggering $58,000. That’s enough to make even the most seasoned investor feel a little queasy! With Square’s latest acquisition costing an average of $51,235 per coin, one can’t help but wonder if they timed this purchase just a bit off with the declining market.
Crypto as Economic Empowerment
According to their public statement, Square believes in the empowering nature of cryptocurrency. They state, “Cryptocurrency is an instrument of economic empowerment, providing a way for individuals to participate in a global monetary system and secure their financial future.” It sounds noble, but is that just marketing speak, or is there some substance underneath? With the current volatility, those trying to ‘secure their financial future’ might have to endure some nail-biting moments!
Long-Term Commitment to Bitcoin
Square isn’t just dipping its toes into the Bitcoin pool; they’re diving in headfirst. The company plans to reassess its Bitcoin investments regularly alongside its other financial pursuits, hinting at a long-term commitment rather than a fleeting trend. This could either be visionary or quite misguided, depending on how the crypto landscape evolves!
Jack Dorsey’s Dual Role
It’s also worth noting the dual role of Twitter CEO Jack Dorsey, who also runs Square. Recently, Dorsey made headlines by donating 1 Bitcoin to a nonprofit aimed at advancing Bitcoin technology. This move might just solidify his position as both a pioneer and a philanthropist in the cryptocurrency world!
