Posted 6 months ago | by @devadmin
Square a payments company owned by Jack Dorsey a Bitcoin-bull, has invested $50 million dollars into the number one digital asset.
That’s 4,709 Bitcoins likely more than you or I will ever see in this lifetime. The investment represents approximately 1% of Square’s total assets as of Q2 2020. In May, Square reported its Bitcoin revenue for the first quarter was $306 million, and a total revenue as a company of $1.38 billion.
Announcing the news on Thursday, Square said “cryptocurrency is an instrument of economic empowerment and provides a way to participate in a global monetary system, which aligns with the company’s purpose.”
“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.”
Dorsey has long been bullish on Bitcoin and hes committed to buying $10,000 worth of Bitcoin (the max) a week from his own Square app.
— jack (@jack) May 12, 2020
Square is one of few companies holding the covetted Bitlicense from the New York Department of Financial Services (DFS).
Dorsey previously told the Times of London there will be a single world currency in the next ten years and Dorsey believes that will be Bitcoin.
“It’s slow and it’s costly,” Dorsey spoke about Bitcoin as a currency, “but as more and more people have it, those things go away. There are newer technologies that build off of blockchain and make it more approachable.”
Though the world’s most popular digital currency “does not have the capabilities right now to become an effective currency,” Dorsey explained the “world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be bitcoin,” expecting this to take place “probably over ten years, but it could go faster.”
Dorsey has previously described blockchain technology as “the next big unlock… something that at first is normally applied to accounting terms, but has the potential to be applied to so much more,” at the Computer History Museum in Mountain View, California, in an interview with The Verge.
“I think there are going to be a bunch of people who say, ‘Blockchain, let’s go apply it everywhere’ and ‘Let’s try to solve every single problem with it,’” Dorsey said, “in the same way that we try to solve every problem with machine learning and data science and deep learning and artificial intelligence. And I think we need to be more thoughtful. What are people struggling with? How does the technology help them progress or does it distract them?,” Dorsey said.
Dorsey who also serves as Twitter’s CEO has hinted last September that big things could be coming for Twitter in regards to Bitcoin, which means we could see Twitter having a Bitcoin tipping option in the future.
Square has become the second publicly-listed company after MicroStrategy to invest in Bitcoin. MicroStrategy previously invested over $400 million into BTC. Square has been active in the Bitcoin space since 2018 when its Cash App started offering buying and selling of only Bitcoin.
Bitcoin is currently trading at: [FIAT: $11,074] Up 3.3% according to Coin Gecko at the time of this report. This marks the first time in three weeks that Bitcoin has seen $11K.