Square, the payment industry amazed the crypto industry with its exceptional step. Square reveals on 7 October 2020 that it bought around 4,709 bitcoins, worth $50 million.
Interestingly, it represents 1% of the total assets of Square by the end of the second quarter of 2020. Square is a leader in the bitcoin space since 2018 via the Cash App service, this enables the customers to buy and sell bitcoin.
The company claims “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.”
The price of virtual currency flows like a roller coaster and likewise, the price raised from $7,100 in January to $10,724 may be due to the pandemic effects. However, the price did fall a bit in the month of March amounting to $5000 or below.
Square Chief Financial Officer, Amrita Ahuja mention “we believe that bitcoin has the potential to be a more ubiquitous currency in the future. As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.”
Square, in order to support the Cash App and enable the customers to exchange bitcoin decide to invest such a heavy amount. Moreover, this will help to build the crypto structure in a more secure manner and to protect the funds of their customers.
Talking about the bitcoin, it requires some special keys to access the funds, and as the transactions are irrevocable it is important to secure these keys. Thus, Square decides to develop a strong relation with bitcoin cold storage and also believes in sharing the community work.
Square is now the next company to land on bitcoin after MicroStrategy, a business intelligence firm that recognized crypto as a treasury reserve assets.