Square, Jack Dorsey’s payment company, buys $50 million worth of bitcoin as part of a larger investment in cryptocurrency
Square, a payment company owned by Twitter CEO Jack Dorsey, announced today that it has purchased approximately 4,709 bitcoins at an aggregate purchase price of $50 million. In a press statement, Square said it believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose. The investment represents approximately one percent of Square’s total assets as of the end of the second quarter of 2020
Jack Dorsey has long been a supporter of bitcoin. In 2018, Dorsey said that he believes Bitcoin will eventually become the world’s single currency within the next decade. In an earnings call in 2018, Dorsey said, “Bitcoin, for us, is not stopping at buying and selling. We do believe that this is a transformational technology for our industry and we want to learn as quickly as possible.” In addition to his company’s purchase, Dorsey also owns an undisclosed amount of bitcoin personally.
“We believe that bitcoin has the potential to be a more ubiquitous currency in the future,” said Square’s Chief Financial Officer, Amrita Ahuja. “As it 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 has previously invested in bitcoin from a product, leadership, and legal innovation perspective, and today adds this financial investment. The company launched bitcoin trading in 2018 with Cash App, which enables the buying and selling of bitcoin. In 2019, the company formed Square Crypto, an independent team solely focused on contributing to bitcoin open-source work for the benefit of all, and also recently launched the Cryptocurrency Open Patent Alliance (COPA), a non-profit organization encouraging crypto innovation and opening access to patented crypto inventions.