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| Square buys $ 170 million worth of Bitcoin |
Square just made another big investment in Bitcoin, which more than tripled its recent investment in cryptocurrencies by purchasing $ 170 million tokens.
The digital payments company, led by the Twitter CEO and Bitcoin attorney (run by Jack Dorsey), announced the investment in its fourth-quarter financial report.
The company bought about 3,318 Bitcoin at an average price of $ 51,236. This indicates that people have a lot of confidence in Bitcoin, which has reached an all-time high, and raises more doubts about its stability.
The company press release announcing the purchase stated: In line with the company's goals, Square believes that cryptocurrency is a tool for building economic strength, as well as providing opportunities for individuals to participate in the global monetary system and their financial future to secure it.
This investment is part of Square's ongoing commitment to Bitcoin, and the company plans to continue measuring its total investment in Bitcoin with other investments, she added.
Bitcoin's current price is just under $ 50,000, after rising for a few months earlier this week and falling after a record high of $ 58,000.
Square first announced a large-scale investment in Bitcoin in October last year when it bought $ 50 million in tokens. At this point, Bitcoin had just crossed $ 10,000 and received 4,709 bitcoins.
The current investment is valued at $ 224 million while the total value of Square Bitcoin is around $ 394 million.
Square has $ 4.4 billion in cash and stock, so the $ 224 million spent on Bitcoin represented only 5% of total working capital at the end of the fourth quarter.
As Bitcoin continues to grow in popularity, companies increasingly prefer Bitcoin. Tesla announced earlier this month that it had purchased $ 1.5 billion worth of Bitcoin to offer greater flexibility, diversification, and monetary benefits.