Square Buys 4,709 BTC ($50 Million), Predicts Mass Adoption for Bitcoin

Popular US-based financial services company, Square has announced that it purchased approximately 4,709 Bitcoin (BTC) valued at $50 million. 

According to a press release today, the firm said it made the investment because of the economic potential of BTC. 

Square’s investment in Bitcoin represents approximately 1% of the firm’s total assets published for Q2 2020, the firm stated. 

Amrita Ahuja, Chief Financial Officer at Square, said the firm is confident that Bitcoin will become a household asset and will gain mass adoption than other currencies in the future.

As BTC grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.

Square bullish on Bitcoin

Even though Square has earlier gained exposure to BTC through its participation in the asset’s leadership, product, and legal innovation perspective, today’s development is the first time the company is directly purchasing the digital currency. 

Square has always supported BTC growth, as the firm earlier introduced Bitcoin trading to its mobile app, CashApp, in 2018, to give investors more access to interact with the asset. 

Since Square launched support for BTC transactions, the service has gone through several upgrades, including getting approval to operate in all 50 states in the U.S. 

In 2019, the company launched two separate entities, Square Crypto and Cryptocurrency Open Patent Alliance (COPA), to foster the growth of Bitcoin and cryptocurrencies at large. 

Institutional adoption

Bitcoin’s potentials cannot be overemphasized, as several firms have made purchases of the asset in recent times. 

MicroStrategy, which earlier purchased $250 million worth of BTC in August, bought more of the digital currency last month, thus bringing its total holdings to $425 million. 

MicroStrategy’s announcement prompted popular online graphic platform Snappa to reveal that it has been accumulating BTC since March as part of its cash reserve.