Square Inc., a payments firm founded by Jack Dorsey and now worth almost $50 million, has made a substantial purchase of just over 4,700 bitcoins. The company fulfilled its financial obligations to shareholders and continued to invest approximately 1% of its total assets by the end of Q2 2020.
Square’s chief financial officers, Amrita Ahuja, explained the reasoning behind the move. He believes bitcoin will become “a more universal currency” in time. He continued by stating that the cryptocurrency is growing in popularity, Square’s chief financial officer, Amrita Ahuja, stated that they plan to “learn” and participate in a controlled manner. This investment is an important step in a company’s journey to a more inclusive future.
Ahuja believes that bitcoin’s structure will ensure its value increases with time.
This angle is closely related to Square CEO Jack Dorsey. He has been a prominent proponent of bitcoin and has often shared his enthusiasm. He called bitcoin “a transformative technology” and predicted that it would be the world’s only currency within 10 years.
According to Square, the purchase of bitcoins is part of its latest capital allocation strategy. This follows the financial results of the second quarter 2020. Square is betting big on Bitcoin, even though there are safer alternatives.
As the cryptocurrency price rallies over the past year have weakened the notion of a crypto bubble popping, the growing interest of institutions in cryptocurrencies has been disproven by many analysts.
This news follows similar stories about progress for Bitcoin companies in America, but cryptocurrency regulation still takes place largely state-by-state. PayPal Holdings, an online-payments giant is looking to specifically unleash cryptocurrencies onto its client list that reportedly includes over 320 million.
Square, a San Francisco-based company, jumped on cryptocurrency in 2019, when it offered Bitcoin trading to its cash app customers. It also holds an BitLicense from the New York State Department of Financial Services (NYDFS) and is now legal to operate as a money transmitter or digital currency exchange.