Sq. buys $170 million extra in bitcoin to spice up crypto holdings

Sq. (SQ) introduced Tuesday it purchased $170 million value of bitcoin so as to add to its increasing place.

The brand new buy from the funds firm now brings its whole bitcoin holdings to roughly 5% of its money and money equivalents. Averaging out the three,318 bitcoins Sq. says it bought would point out a median value of about $51,235 per bitcoin (BTC-USD). The cryptocurrency had dipped under $48,000 on Tuesday on the time of Sq.’s announcement.

“Aligned with the corporate’s goal, Sq. believes that cryptocurrency is an instrument of financial empowerment, offering a manner for people to take part in a world financial system and safe their very own monetary future,” the corporate wrote in a press release forward of its earnings name. “The funding is a part of Sq.’s ongoing dedication to bitcoin, and the corporate plans to evaluate its mixture funding in bitcoin relative to its different investments on an ongoing foundation.”

Sq. had earlier bought about $50 million in bitcoin in October 2020. On the time, the acquisition amounted to about 1% of the corporate’s money and money equivalents.

For comparability, Tesla’s $1.5 billion buy of bitcoin amounted to about 8% of Tesla’s money equivalents when it was introduced earlier in February. That place had already swelled by about $1 billion when bitcoin surged previous $58,000 to hit a brand new all-time excessive earlier than the cryptocurrency collapsed this week again all the way down to about $48,000. This weekend, Tesla CEO Elon Musk tweeted that the worth of bitcoin appeared, “excessive.”

Enterprise intelligence software program firm MicroStrategy was the primary publicly traded firm so as to add bitcoin to its steadiness sheet final yr. Its CEO Michael Saylor informed Yahoo Finance earlier this month that other businesses were likely to follow Tesla and Square in adding bitcoin to its cash holdings. He made his prediction shortly after holding a digital convention with about 1,000 enterprise leaders and simply earlier than his firm filed to boost greater than $500 million to buy extra bitcoin. Saylor was fast to take to Twitter to rejoice Jack Dorsey main Sq. to double down on bitcoin in a Tuesday tweet.

Sq. shares fell by about 5% in after-hours buying and selling after reporting mixed results. Bitcoin was little modified after Sq.’s announcement, hovering round $48,000.

Zack Guzman is an anchor for Yahoo Finance Stay in addition to a senior author overlaying entrepreneurship, hashish, startups, and breaking information at Yahoo Finance. Observe him on Twitter @zGuz.

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