Jack Dorsey, CEO of Twitter Inc. and Square Inc., speaks during an Empowering Entrepreneurs event at Ryerson University in Toronto, Ontario, Canada, Tuesday April 2, 2019.
Cole Burston | Bloomberg | Getty Images
Square bought $ 170 million worth of Bitcoin, the company revealed Tuesday in its fiscal fourth quarter financial report.
The company said it bought around 3,318 bitcoins, expanding its October 2020 purchase to 4,709. Square said it represented around 5% of the company’s total assets at the end of 2020.
Bitcoin traded around $ 48,000 on Tuesday after the bell, up nearly 62% for the year.
“This investment is part of Square’s continued commitment to bitcoin, and the company plans to continually assess its overall bitcoin investment against its other investments,” the company said in its earnings release. Its CEO Jack Dorsey has also been a supporter of digital currency.
Businesses are turning to Bitcoin more and more as it becomes more mainstream. Tesla announced earlier this month that it had purchased $ 1.5 billion worth of Bitcoin for “more flexibility to further diversify and maximize returns on our cash.”
Paying into the digital coin carries risks, due to its volatility. Tesla’s share price is now directly tied to the price of Bitcoin, according to Wedbush analyst Daniel Ives.
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