Square buys $ 170 million worth of bitcoin

Square bought $ 170 million worth of bitcoin, the company revealed in its fiscal financial report in the fourth quarter Tuesday.

The company said it bought about 3,318 bitcoins, expanding their October 2020 purchase of 4,709. Square said it represents about 5% of the company’s total assets by the end of 2020.

Bitcoin traded around $ 48,000 after the bell on Tuesday, up nearly 62% for the year.

“The investment is part of Square’s ongoing commitment to bitcoin, and the company intends to evaluate their total investment in bitcoin against its other investments on an ongoing basis,” the company said in the news release. their employment. His CEO, Jack Dorsey, was also an advocate of the digital currency.

Companies are increasingly turning to bitcoin as it becomes more commonplace. Earlier this month Tesla announced it had bought $ 1.5 billion worth of bitcoin for “more flexibility to further diversify and increase yields on our currency.”

Pouring into the digital coin comes with risks, due to its variability. Tesla’s share price is now directly tied to the price of bitcoin, according to Wedbush analyst Daniel Ives.

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