Square buys Bitcoin worth $50 million

Square Incorporation, a payments company owned by Jack Dorsey, recently placed a bet on Bitcoin. The company bought 4,700 BTC worth about $50 million. Jack believes that Bitcoin will be the world’s single currency in no distant time. He added that the recent bid to buy 4,700 Bitcoins was part of an investment plan shared by the company earlier on.

After paying off its financial obligations to shareholders, the company aims to invest about 1% of its total assets at the end of the second quarter of 2020.

Chief Financial Officer of Square

The Chief Financial Officer of Square, Amrita Ahuja, further explained the reason behind this decision. She spoke about the potentials of Bitcoin and the probability of becoming a more prevalent currency in the future.

In addition to that, she said that Square wants to learn and participate in the adoption of cryptocurrency. She also pointed out that the structure of Bitcoin is an enabling factor in its increase in value over time. As Square is building products based on a more inclusive future, this investment is only a step towards better achievements.

Jack’s take on the project

The founder and CEO of Square, Jack Dorsey, expressed his optimism about Bitcoin and the project at hand. Moreover, he is one of the most vocal leaders in the tech industry to support this project. He has also noted in the past that cryptocurrencies can provide an opportunity that brings more people into the financial sector.

To him, Bitcoin is an exceptional technology that could become the world’s single currency in 10 years. After declaring the financial results for its second quarter, Square developed a capital allocation strategy for the company. It made space for Bitcoin investment choices as well as other traditional investment choices.

Meanwhile, PayPal Holdings, another payment company, is also planning a crypto strategy. Reports have it that the company plans to bring crypto options to its 320 million users.