Square has actually purchased more bitcoin, including $170 million worth of the cryptocurrency to its balance sheet. The company now holds 5% of its cash reserves in bitcoin. Its Cash App was utilized by more than 3 million consumers to purchase or offer the cryptocurrency in 2015.
$170 Million Bitcoin Purchase
Square Inc. (NYSE: SQ) revealed Tuesday its 4th quarter and complete year 2020 outcomes. The company also revealed that it has actually bought $170 million worth of bitcoin “as part of its continuous dedication to the cryptocurrency.” This is the company’s 2nd bitcoin purchase; the very first was for $50 million made in October in 2015. According to the statement:
It has actually bought around 3,318 bitcoins at an aggregate purchase cost of $170 million. Combined with Square’s previous purchase of $50 million in bitcoin, this represents around 5 percent of Square’s total cash, cash equivalents and valuable securities as of December 31, 2020.
“Square thinks that cryptocurrency is an instrument of financial empowerment, supplying a method for people to get involved in a worldwide financial system and protect their own monetary future,” the company described. “The financial investment is part of Square’s continuous dedication to bitcoin, and the company prepares to examine its aggregate financial investment in bitcoin relative to its other financial investments on a continuous basis.”
Increased Bitcoin Adoption through Cash App
The NYSE-listed company, led by CEO Jack Dorsey who also heads Twitter Inc., is seeing increased bitcoin adoption. Its Cash App enables individuals to purchase and offer BTC. According to Square’s incomes report launched Tuesday:
In 2020, more than 3 million consumers bought or offered bitcoin on Cash App, and, in January 2021, more than one million consumers bought bitcoin for the very first time.
“Furthermore, in the 4th quarter of 2020, bitcoin volumes per consumer were up more than 2.5x year over year, mainly driven by purchasing activity,” Square continued.
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In addition, the company revealed that “During the complete year 2020, we saw considerable development in bitcoin income year over year.” Noting that “Bitcoin income is the total sale quantity of bitcoin to consumers,” Square composed:
For the complete year of 2020, Cash App produced $4.57 billion of bitcoin income and $97 million of bitcoin gross earnings, up 9x and 12x year over year, respectively.
As for the 4th quarter, “Cash App produced $1.76 billion of bitcoin income and $41 million of bitcoin gross earnings … up around 10x and 13x year over year, respectively.”
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