Square has made a $ 50 million investment in bitcoin.
This was revealed by Anthony Pompliano on Twitter, claiming that the company will keep the digital currency on its balance sheet as a store of value.
BREAKING: Square has invested $ 50 million in Bitcoin and will hold the digital currency on their balance sheet.
Every corporation will eventually do this. @Jack continuing to lead the way!
– Pomp 🌪 (@APompliano) October 8, 2020
Pompliano comments saying:
"Every corporation will eventually do this”.
In fact, Square is not the first company to make such a decision. In fact, MicroStrategy has even adopted Bitcoin as its main reserve, buying 38,250 Bitcoins with a total value of more than $ 400 million.
Square is a company founded by Jack dorsey, founder of Twitter and big supporter of Bitcoin. In fact, with its Square Crypto division, it is working hard to make bitcoin as usable as possible, even for the masses.
To date it has bought 4,709 BTC, or 1% of the company's assets, and in Twitter reveals that he sees cryptocurrencies as "An instrument of economic empowerment" what "Provides a way to participate in a global monetary system" .
Why Square Chose an Investment in Bitcoin
In Square, Inc.'s Bitcoin Investing Whitepaper, the company reveals that it believes the time has come to expand its balance sheet, largely denominated in US dollars, by making a significant investment in bitcoins.
Purchases were made over the counter through the Bitcoin Cash App trading liquidity provider. They traded a spread on a public Bitcoin index, using a time-weighted average price (TWAP) over a 24-hour period with low price volatility. expected and high market liquidity.
The BTC will be stored internally thanks to the Cash App cold storage infrastructure. They are also equipped with a insurance policy to protect against both internal and external theft, both in hot and cold wallets.
Therefore, it is clear that the intention is to store purchased BTC for the long term, to use it as a store of value and not as a bargaining chip.
After the publication of the news, the price of Bitcoin has risen from just under $ 10,600 to over $ 10,800 in just a few minutes, perhaps in reaction to this news. In fact, it is not absurd to imagine that other companies will end up doing the same.