CRYPTONAIRE
WEEKLY CRYPTO investment journal
Square’s $50M Bitcoin Buy Is Now Worth $253M
The value of Square’s bitcoin investment from October 2020 has increased five-fold. Square’s Cash App deals in bitcoin operationally but a $50 million investment from the publicly traded firm’s cash reserves has grown significantly since being announced last fall. Square’s 4,709 bitcoins were worth $50 million when the company announced the purchase in October 2020. Now that BTC (-13.7%) is worth a whopping $253 million. Along with MicroStrategy, Square was an early entrant in the corporate bitcoin sweepstakes. Such treasury management plays inspired Elon Musk’s Tesla to invest $1.5 billion in bitcoin earlier this month. Still, ahead of Square’s latest earnings report on Tuesday, analysts aren’t as enthused about the fraction of Square’s treasury (roughly 1% of the firm’s total assets when announced) that is cryptodenominated.
“There will be a bigger focus on the bitcoin purchases of their customer base and Cash App,” said Seaport Global analyst Chris Brendler. “It should be a big number in the fourth quarter.” Read more...
Cryptonaire Weekly | February 23rd 2021
16
+44 (0) 207 193 2931
