In what is yet another development that highlights the value attached to cryptocurrencies by institutions, Square Inc. announced today that it has purchased another $170 million worth of Bitcoin, taking its total cash equivalents in the digital asset to five percent.
“Why are we doing this? We believe the Internet needs a native currency and we believe Bitcoin is it,” CEO Jack Dorsey said during a quarterly earnings call earlier today.
Square was one of the first public companies to make an investment in the market-leading cryptocurrency, buying $50 million in Bitcoin back in October 2020. The company has now purchased even more Bitcoin, with Square now intending to launch more Bitcoin-focused products – something that Dorsey said aligns with Square’s incentives with customers now that the company has more skin in the game.
Square’s decision came on the back of the company revealing that its Cash App had over 36 million monthly active users in December, up by over 50% from last year. According to Dorsey,
“We saw customers increase their usage of products beyond peer-to-peer transactions, including use of our Visa Cash Card, Cash Boost, and Bitcoin.”
In fact, the company recently launched Bitcoin boost, a feature that gives people a way to earn Bitcoin on all cash card purchases.
Additionally, the company also revealed that the fourth quarter of 2020 saw Bitcoin volumes per customer hike by more than 2.5 times when compared to the same period last year, with the said hike driven by buying activity from both existing and new customers.
Unsurprisingly, corresponding to the market-wide bull run, crypto-adoption rates have skyrocketed a lot lately, with 1 million customers buying Bitcoin for the first time in January 2021 alone. In comparison, 3 million customers did so during the entirety of 2020. Ergo, it’s very understandable why Square Inc. is “doubling down” on its Bitcoin buys.
“We’re also going to double down on our commitment to Bitcoin and continue to look for new ways to connect our product lines within the Cash App.”