Square got 100% return on its initial $50 million Bitcoin purchase, following Microstrategy’s purchase that shocked the space earlier this year. The Silicon Valley firm spent about $50 million from its balance sheet on BTC and this marked the second time that a US company put BTC onto its balance sheet as an investment but as we can see, it played out quite well so let’s read more in today’s Bitcoin news.
While some believed this was a stupid idea, Square got 100% return on their investment and joined Microstrategy and a number of other companies and funds that made quite a lot of successful investments in BTC over the past few months. As noted by a trader on Twitter, Square’s BTC investment is now up by more than 100%:
“Square’s #Bitcoin position has now 𝗱𝗼𝘂𝗯𝗹𝗲𝗱 𝗶𝗻 𝘃𝗮𝗹𝘂𝗲. On October 7, 2020, Square, Inc. purchased approximately 4,709 bitcoins at an aggregate purchase price of $50 million. Purchase price: $10,617 Current price: $21,400,”
Square is far from being the only company to have made a successful investment in BTC in recent months. Guggenheim’s Scott Minerd also said that the company will allocate capital to BTC At around $10,000 but didn’t disclose how they will make that investment but they should be up by over 100% on their initial purchase. Wall Street billionaire Paul Tudor Jones also got up by 100% on its initial purchase of BTC before the halving occurred.
The returns that these BTC investments are driving are expected to draw a lot more attention from the Wall Street companies in the upcoming months. The CIO of Guggenheim Scott Minerd said that he thinks BTC will eventually hit $400,000 in this market cycle. He cited the scarce nature of the leading cryptocurrency and this prediction means that Bitcoin’s market cap could also surpass the price of the metal gold. $400,000 is a price target mentioned by investors like the Winklevoss twins. More investors also think that BTC will be a better investment in the years ahead than gold itself.
As recently reported, Square invested $10 million in a new initiative that aims to promote green energy for BTC mining. Jack Dorsey’s Square invested $10 million in order to promote the adoption of green energy in the mining industry so according to the official release, the US-based financial services company launched the new initiative while trying to become net-zero carbon for operations by 2030
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