Twitter boss buys $50 million worth of Bitcoin with Square

In a press release, Square announced that it had purchased 4,709 Bitcoins. Its transaction gave it second place in the ranking of bitcoin investments by U.S. financial companies. 

The company invested $50 million, a score that is already colossal, even though it falls short of MicroStrategy’s $400 million invested last month. In addition to the entrepreneur’s love affair with cryptocurrencies, the stakes will be high for the future, especially in the face of PayPal.

Read more about Square and the recent acquisition of Bitcoins with the Born2Invest mobile app. As an app dedicated to business news, our companion app will bring you the most important updates, so you can stay informed.

Payment terminal Square

Square continues to make its mark in the payment business. Whether for consumers or merchants, Square provides solutions.

“Given the rapid evolution of the crypto sector and the unprecedented uncertainty in the macroeconomy and monetary regime, we believe the time has come for us to expand our cash flow, which is largely in dollars, and make a significant investment in Bitcoin,” Square said in a letter shared by his boss Jack Dorsey on Twitter.

Leading by example

Square shines in particular in its payment activity with its Cash App application. As a Bitcoin supporter, Jack Dorsey has of course introduced the purchase and use of Bitcoins via the app, and the entire Square product network (even the payment terminals) accept payment via these digital tokens. An availability that is not found in banks.

In 2018, as reported by The Verge, Square explained its interest by stating: “Bitcoin, for us, doesn’t stop at buying and selling. We believe it is a transformative technology for our industry and we want to learn as quickly as possible.”

But of course, as a company that aims to compete with PayPal and the banking world in general, Square has an economic interest in it. In the first quarter of 2020, $306 million of its $1.38 billion in revenues came from its Bitcoin business. The details are not accessible, Square had only filled in one line “Bitcoin revenues” in the document published on the website of the SEC, the regulator of American banks and financial companies.

The growth of the Fintech company was confirmed the following quarter. In the midst of a deplorable health crisis for consumers, Square announced a revenue of around $875 million, up 600% over one year.

Square wants to bypass PayPal

Its main competitor PayPal, which benefits from the first position in the ranking of the financial companies of payment, could be taken by Square by surprise. The strategy of Jack Dorsey’s box could pass in front of Elon Musk’s PayPal. Rightly or wrongly, Square has started working on cryptocurrency much faster than PayPal, which is still studying its interest and launch possibilities.

To date, Square reported having a special team called Square Crypto, which is working on tools and technologies to make Bitcoin a currency “for the benefit of all”. Anyone who takes advantage of its decentralization, transparency and belonging to no entity is making Square drool. In addition to its work on technologies and compatibility on its applications and payment terminals, Square also intends to put its name in the circle of the Bitcoin community.

To this end, it launched Cryptocurrency Open Patent Alliance (COPA), a non-profit organization, on September 11th. The aim is to bring together all the players in a consortium that is supposed to fight against patent trolling and guarantee access to the technology. A democratization that brings people together and controls. In one month, its price on the NYSE went from $145 to $184.

__

(Featured image by Clay Banks via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in PRESSECITRON, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.