Square Purchased Another $170 Million In Bitcoin: Report

Square purchased another $170 million in BTC, loading up the balance sheet as the company announced. The revenue from its Cash app also increased by 9 times last year so let’s read more in our latest Bitcoin news today.

In the Q4 earnings report, Square revealed that it purchased even more BTC. The company also reported $1.76 billion in revenue from BTC trading in Q4. Now, Square purchased another $170 million or 3,318 bitcoins which is on top of the 4,709 BTC that is bought and added to its balance sheet. That purchase along with Microstrategy’s aggressive BTC buy, made Tesla enter the market with a $1.5 billion entry. The price of BTC has more than quadrupled in the past four months.

The two BTC purchases combined 5% of Square’s total cash as the company said. Square said in a press release:

 “believes that cryptocurrency is an instrument of economic empowerment, providing a way for individuals to participate in a global monetary system and secure their own financial future. The investment is part of Square’s ongoing commitment to bitcoin, and the company plans to assess its aggregate investment in bitcoin relative to its other investments on an ongoing basis.”

In the earnings report, the company reported $4.58 billion in BTC Revenue from the Cash app for 2020 which was nine times higher than its 2019 bitcoin revenue, marking $97 million in profits. The $1.76 billion of the revenue came from the fourth quarter alone and a 1000% increase from Q4 as the price of the coin surged from $10,500 and $28,600 in the last quarter. According to the company, the rise in revenue was fueled by the new and the old BTC buyers:

“In the fourth quarter of 2020, bitcoin volumes per customer were up more than 2.5x year over year, primarily driven by buying activity, as existing customers continued to buy bitcoin and new adopters bought even greater volumes of bitcoin.”

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.