Square acquires $170 million more in bitcoin to increase crypto holdings

Square (SQ) revealed Tuesday that it acquired $ 170 million in bitcoin to include in its expansion position.

The payment company’s new purchase currently brings its full bitcoin holdings to around 5% of its cash and cash matches. By balancing the 3,318 bitcoins that Square claims it bought, it would certainly show a typical price of about $ 51,235 per bitcoin (BTC-USD). The cryptocurrency had actually dropped below $ 48,000 on Tuesday at the time of the Square news.

“Straightened with the purpose of the company, Square believes that cryptocurrency is a financial empowerment tool, providing a method for people to participate in an international monetary system and protect their own economic future,” the company wrote in a statement from Press before its earnings call “The financial investment pertains to Square’s recurring dedication to bitcoin, and the company intends to analyze its accumulated financial investment in bitcoin over its other investments on a recurring basis.”

Square had previously acquired around $ 50 million in bitcoin in October 2020. At the time, the acquisition amounted to roughly 1% of the company’s cash and cash counterparties.

By contrast, Tesla’s $ 1.5 billion bitcoin acquisition totaled roughly 8% of Tesla’s cash counterparts when previously disclosed in February. That location had actually risen by around $ 1 billion when bitcoin surged from the previous $ 58,000 to hit a new all-time high before the cryptocurrency crashed today and fell back to roughly $ 48,000. This weekend, Tesla CEO Elon Musk tweeted that the price of bitcoin seemed “high.”

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