In an announcement detailing its Q4 and Full Year reports released Tuesday, Square (NYSE: SQ), the financial services outfit launched by Twitter CEO Jack Dorsey, has announced that it has bought another $170 million worth of bitcoin.
This follows the sudden dip experienced early Monday, February 22, which has led the industry into a state of shock, followed by disbelief, as the ‘alpha’ cryptocurrency plummeted to well below $50,000 apiece.
According to the statement, this confident buy-in from a company that has previously bought $50 million in bitcoin (announced last year, 2020, during the fall) represents “approximately five percent” of Square’s total cash, cash equivalents, and marketable securities as of December 31, 2020. The purchase transferred some 3,318 bitcoins aggregated at the purchase price of $170 million.
This purchase, according to Square, is perfectly “aligned with the company’s purpose,” and was done because the company “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 strategy and commitment to the cryptocurrency space in general, and to bitcoin in particular, with Square indicating that this was part of longer-term plans for the company’s stake in the crypto and blockchain industry.
Dorsey, a known crypto advocate, was recently quoted in a tweet by a nonprofit group called Brink as being their donor of 1 BTC. Brink is a Bitcoin nonprofit research and development group dedicated to bringing bitcoin’s protocol and network to the next advancement.
With these admirable efforts at sustaining bitcoin, the crypto market may, for a short while, have a breath of fresh air from the woes plaguing this week. Confidence is high and we can only look forward to what’s next for bitcoin’s already storied future.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.