In a major announcement on Thursday, October 8, Jack Dorsey-backed Square Inc. (NYSE: SQ) announced that they have invested a massive $50 million in Bitcoin. With the total purchase amount of 4,709 BTC, the purchase happened at an average price of $10617.96 per BTC.
Today, @Square announced that it has purchased $50M in bitcoin. Square believes cryptocurrency is an instrument of economic empowerment and provides a way to participate in a global monetary system, which aligns with the company’s purpose. For more, visit https://t.co/HPhSMfVgac.
— Square IR (@SquareIR) October 8, 2020
Calling Bitcoin as an instrument of “economic empowerment”, Square said that the latest BTC purchase aligns with the company’s purpose of participating in the global monetary system. The latest BTC purchase is just 1% of Square’s total assets under management. Explaining this move, Square’s Chief Financial Officer, Amrita Ahuja said:
“We believe that bitcoin has the potential to be a more ubiquitous currency in the future. 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 interests in Bitcoin and the crypto markets dates back to 2018 when it announced its Cash App. The Square Cash App is today a very popular choice among crypto users to buy and sell Bitcoins. Last year, Square also announced its crypto subsidiary – Square Crypto – for contribution to Bitcoin open-source.
Square’s entry to the Bitcoin market will bolster investors’ confidence in the world’s largest cryptocurrency. financial heavyweights have already started chipping in their investments in Bitcoin. The indication of Square’s entry to Bitcoin arrived some time ago with company CEO Jack Dorsey speaking in favor of BTC.
With this announcement, Square will be joining the business intelligence firm MicroStrategy who invested nearly half-a-billion dollars into Bitcoin earlier this year.
BTC Price Convergence Suggests Bullish Breakout, Hast Rate Hits New ATH
Over the last few days, BTC has shows movement in a narrow as the price convergence hints at a bullish breakout.
— The Moon 🌙 (@TheMoonCarl) October 8, 2020
Besides, the Bitcoin hash rate has all hit a new all-time high of 170 exahashes. As per Glassnode data, the BTC hash rate has jumped 40% since Bitcoin halving in May 2020.
#Bitcoin hash rate hits a new ATH and touches 170 exahash for the first time in history on the hourly chart (24h MA).
That is an increase of around 40% since the halving in May, substantially adding to the security of the network.
— glassnode (@glassnode) October 8, 2020
Interestingly, the bullish sentiment among several crypto heavyweight and analysts remain high. With weakening data of the global economy and the probability of higher inflation, some financial analysts have suggested moving to Bitcoin to save capital.
For 953 million people in 20 countries with weakening currencies, #Bitcoin represents something greater than a treasury asset. For them, it's more like an ark of encrypted energy to escape the flood. https://t.co/yABiANYL6s
— Michael Saylor (@michael_saylor) October 7, 2020
We at CoinGape recently covered China’s hidden interest in Bitcoin and the CCP’s latest push for crypto. Any big move can probably trigger the next bull run. Analysts have been hinting the possibility of Bitcoin hitting $1 trillion in market cap in the next two years.