Square Inc invest 170 million dollars on Bitcoin
Square Inc raised the stakes on bitcoin by funding $170 million more and Chief Executive Jack Dorsey assured on Tuesday to increase the payment firmâ€™s commitment to the worldâ€™s biggest cryptocurrency.
Square purchased 3,318 bitcoins in Q4, adding to the mainstream recognition of the internet currency that has been gaining support from several big investors after Musk's investment.
Square has been associated with the currency for years and its Cash App, a payment application, has enabled users to trade.
The app had three million current bitcoin customers in 2020, with a million new users buying the currency for the first time in January, the company announced.
Last year, Square bought about 4,709 bitcoins at an aggregate price of $50 million. Since then, the coinâ€™s price has scaled record highs, with Tesla Inc investing $1.5 billion and Bank of NY Mellon Corp saying it will set up a unit to help its clients deal in digital equity.
Stocks of the company fell about 5% after Tuesday, extending losses booked during the session.
Squareâ€™s revenue in the quarter more than multiplied to $3.16 billion, which the company said was helped by bitcoin investments on Cash App.
Squareâ€™s gross profit on bitcoin trading rose 13 times in the fourth quarter, but it was still just 2% of its revenue from the cryptocurrency. Its bitcoin holdings are now worth about 5% of its $4.4 billion capital.
The company posted modified earnings of 32 cents per share, beating market expectation of 24 cents.