Square Announces $170 million Bitcoin Purchase

Square, a leading financial payment institution, has announced the purchase of over 3,000 units of Bitcoin to its treasury which translates to roughly $170 million.

The Jack Dorsey owned company had earlier purchased $50 million worth of the crypto king in October 2020 making it one of the earliest institutional investors in the crypto space. The earlier investment is now worth $224 million and together with its recent acquisition, Square now holds Bitcoin that is cumulatively worth $394 million. The recent investment also brings its Bitcoin total exposure to 5% of its cash asset.

According to a statement released by the firm, “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 also added that it 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 firm’s purchase is already making waves on Twitter as users of the platform have been hailing the purchase.

Jack Dorsey, the firm’s CEO, is quite popular for his pro-BTC stance and in recent times, he has made donations towards the cause of developing Bitcoin. We reported the Blind Bitcoin Trust he launched with Jay Z for “teams in India and Africa who are making efforts towards further developing the Bitcoin network.” Earlier today, he also made a  donation of 1 BTC to Brink, a nonprofit group focused on Bitcoin development.

Square’s purchase is a major development for the crypto industry in light of the major price decline the digital asset have been on in the past 48 hours where we have seen the value of the asset drop below the $50,000 mark.

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