Square boosts crypto holdings with $170 million purchase of Bitcoin

Square (SQ) announced Tuesday it bought $170 million worth of bitcoin to add to its expanding position.

The new purchase from the payments company now brings its total bitcoin holdings to approximately 5% of its cash and cash equivalents.

Averaging out the 3,318 bitcoins Square says it purchased would indicate an average price of about $51,235 per bitcoin (BTC-USD). The cryptocurrency had dipped below $48,000 on Tuesday at the time of Square’s announcement.

Square had earlier purchased about $50 million in bitcoin in October 2020. At the time, the purchase amounted to about 1% of the company’s cash and cash equivalents.

For comparison, Tesla’s $1.5 billion purchase of bitcoin amounted to about 8% of Tesla’s cash equivalents when it was announced earlier in February.

That position had already swelled by about $1 billion when bitcoin surged past $58,000 to hit a new all-time high before the cryptocurrency collapsed this week back down to about $48,000.

Business intelligence software company MicroStrategy was the first publicly traded company to add bitcoin to its balance sheet last year.

Square announced today that it has purchased ~3,318 bitcoins at an aggregate purchase price of $170 million. Combined with Square’s previous purchase of $50 million in #bitcoin, this represents ~five percent of total cash, cash equivalents & marketable securities as of 12/31/2020

Square shares fell by about 5% in after-hours trading after reporting mixed results. Bitcoin was little changed after Square’s announcement, hovering around $48,000.

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