Square invests in an additional $170 million BTC

Square’s $50 million investment in BTC is worth more than $200 million. Enough to justify a new investment in BTC! The company announces the acquisition of an additional 3,318 Bitcoins for $170 million.

The soaring price of Bitcoin is not only making the fortunes of miners and wealthy investors. It also benefits companies specializing in cryptocurrencies, such as Square.

For the company, however, the benefits are twofold. In October, Square invested 50 million dollars of cash in crypto-actives. Since then, this wealth represents more than 200 million dollars.

The operation is therefore a financial win-win for the American firm. The company thus chooses to more than triple its stake. On the occasion of the publication of its results, Square announces a new transaction.

Jack Dorsey’s firm now holds 3,318 additional bitcoins. This operation represents a total purchase of 170 million dollars. Thus, Bitcoin now weighs 5% of Square’s cash, compared to 1% previously.

And this share could grow further in the future. “This investment is part of Square’s ongoing commitment to Bitcoin, and the company plans to continually evaluate its overall investment in Bitcoin relative to its other investments,” the publisher said.

But Bitcoin is not only a financial instrument for the company. Cryptocurrencies are also a great tool for boosting business performance. Its Cash App allows its customers to invest in cryptocurrency.

But Bitcoin acts as a driver of new revenues. In 2020, BTC generated a turnover of 4.57 billion dollars. And as proof that adoption continues to grow, very rapidly, these revenues were just $97 million a year earlier.

In the fourth quarter alone, Bitcoin revenues jumped 1000% to $1.76 billion. It is true that over the period, the value of the cryptocurrencies more than doubled from $10,500 to $28,600.

Thus, “Bitcoin volumes per customer increased by more than 2.5 times over the previous year, mainly due to purchasing activity,” says Square. Indeed, “existing customers continued to purchase bitcoin and new customers purchased even more significant volumes of bitcoin. »