Square buys $ 170 million worth of Bitcoin

Jack Dorsey, CEO of Twitter Inc. and Square Inc., speaks during an entrepreneur empowerment event at Ryerson University in Toronto, Ontario, Canada, Tuesday, April 2, 2019.

Cole Burston | Bloomberg | fake images

Square bought Bitcoin worth $ 170 million, the company revealed in its fiscal fourth quarter financial report on Tuesday.

The company said it bought approximately 3,318 bitcoins, expanding its October 2020 purchase from 4,709. Square said it represents about 5% of the company’s total assets at the end of 2020.

Bitcoin traded around $ 48,000 after the bell on Tuesday, almost 62% higher on the year.

“The investment is part of Square’s ongoing commitment to bitcoin, and the company plans to evaluate its aggregate investment in bitcoin relative to its other investments on an ongoing basis,” the company said in its earnings release. Its CEO, Jack Dorsey, has also been an advocate for digital currency.

Businesses are increasingly leaning towards Bitcoin as it goes mainstream. Tesla announced earlier this month that it bought $ 1.5 billion worth of Bitcoin for “more flexibility to further diversify and maximize returns on our cash.”

Pouring into the digital currency 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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