Bitcoin
$42,535.01-3.45%
Ethereum
$2,947.83-5.61%
XRP
$0.933539-3.50%
Cardano
$2.16-3.67%
Polkadot
$28.04-5.85%
Stellar
$0.267289-4.10%
Dogecoin
$0.201678-2.64%
Chainlink
$23.36-5.98%
Uniswap
$22.77-9.25%
Polygon
$1.10-3.83%
Algorand
$1.69-6.86%
Cosmos
$36.96-6.44%
Litecoin
$147.16-3.60%
Bitcoin Cash
$492.46-3.55%
Wrapped Bitcoin
$42,504.91-3.48%
The Graph
$0.666516-3.66%
Filecoin
$58.56+1.00%
Tron
$0.086748-3.27%
Ethereum Classic
$46.00-3.50%
Tezos
$6.17-5.07%
Aave
$274.22-8.67%
Monero
$239.79-1.29%
NEO
$37.82-4.36%
EOS
$3.87-3.77%
IOTA
$1.14-5.31%
BitTorrent
$0.003124-3.43%
Bitcoin SV
$128.58-1.23%
Maker
$2,381.82-0.47%
Waves
$23.14-3.97%
Dash
$156.52-4.61%
Decentraland
$0.672322-5.02%
Decred
$108.66-5.39%
ICON
$1.50-7.98%
OmiseGO
$9.49+3.72%
NEM
$0.142236-4.88%
Zcash
$105.93-4.98%
Paxos Standard
$0.991027-0.91%
Yearn Finance
$29,685.48-3.48%
NuCypher
$0.268381-5.75%
Ren
$1.02-9.13%
Qtum
$9.30-5.23%
Bitcoin Gold
$49.72-5.66%
Basic Attention Token
$0.610700-5.90%
Fetch.ai
$0.740810-10.06%
0x
$0.853977-6.32%
Kava.io
$5.51-4.72%
Bancor
$3.42-4.75%
Band Protocol
$7.14-6.38%
Siacoin
$0.014480-3.83%
Nano
$4.28-5.11%
Loopring
$0.368477-2.88%
Numeraire
$40.58-3.05%
Storj
$1.04-5.05%
Civic
$0.414455-4.78%
Lisk
$2.71-5.03%
PAX Gold
$1,758.93-0.30%
Orchid
$0.309789-4.42%
Enzyme
$140.75-5.83%
Augur
$20.55-2.14%
Aragon
$4.41-6.47%
district0x
$0.145183-6.30%
Kyber Network
$1.40-5.60%
SingularDTV
$0.001225+3.95%
Tether
$1.00-0.02%
USD Coin
$1.00-0.00%
Dai
$0.999840-0.11%
Breaking news: Ethereum Developer Virgil Griffith Pleads Guilty to Conspiracy Charge in North Korea Sanctions Case

Square Puts 1% of Total Assets in Bitcoin in Surprise $50M Investment

Jack Dorsey's payments company is the second publicly traded firm to put some portion of corporate reserves into bitcoin, following MicroStrategy's $425 million all-in bet.

Oct 8, 2020 at 1:10 p.m. UTC
Updated Sep 14, 2021 at 10:06 a.m. UTC

Square, the payments company helmed by Twitter CEO Jack Dorsey, announced Thursday it has purchased 4,709 bitcoins, a $50 million investment representing 1% of the firm's total assets.

  • "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 company said in a statement.
  • "We believe that bitcoin has the potential to be a more ubiquitous currency in the future," said Square CFO Amrita Ahuja. "For a company that is building products based on a more inclusive future, this investment is a step on that journey."
  • Bitcoin's price jumped 2.5% following the announcement, while shares in Square popped around 1%.
  • Characterized by Square as a mission-driven investment, Square's $50 million buy comes amid Dorsey's very public spat over corporate responsibility with another crypto-friendly CEO, Coinbase's Brian Armstrong.
  • Dorsey chided Armstrong last week for discouraging his employees from engaging in activism in the workplace. Armstrong said it was a corporate imperative; Dorsey framed it as hypocritical.
  • "Bitcoin (aka 'crypto') is direct activism against an unverifiable and exclusionary financial system which negatively affects so much of our society," Dorsey tweeted in response to Armstrong's blog post.
  • Square is also now the second technology firm to go long on bitcoin in recent months after MicroStrategy, a business intelligence firm, crowned the crypto as its treasury reserve asset of choice.
  • MicroStrategy invested $425 million into bitcoin, according to a series of disclosures that pumped the stock's value and revealed its CEO, Michael Saylor, to be an unexpectedly vocal bitcoin maximalist.
  • But Square's bitcoin investment is far more in line with its corporate identity and business services than was the case for MicroStrategy.
  • Square's Cash App is a critical bitcoin entry point for many retail investors. It has become a major revenue driver for the publicly traded fintech.

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Loading...