Square, a company led by Twitter founder Jack Dorsey, has revealed that it has purchased $ 50 million of Bitcoin in a new investment strategy that focuses on cryptocurrencies as a reserve asset.
In a statement, Square announced the purchase, and the statement made clear that the company believes Bitcoin is a tool for economic empowerment, and was told that Bitcoin is in line with the company's purpose, which aims to be a vehicle for economic growth for all types of people.
Thus, "Square" followed in the footsteps of "MicroStrategy", which bought quantities of Bitcoin earlier.
According to Mr. Ryan Silkes, CEO of "Messari", the investment of "Square" represents 1% of its general budget.
Therefore, Silkis considers the Square investment to be larger than MicroStrategy, and has also indicated that Square's investment represents a “reasonable hedge.”
In the same sense, Amrita Ahuja, Chief Financial Officer of Square, said:
"We believe that Bitcoin has the potential to become a more popular currency in the future.
As the adoption grows, we intend to learn and participate in a disciplined manner.
For a company building products based on a more inclusive future, this investment is a step in that journey."
In the cryptocurrency community, the news has been considered extremely bullish.
Anthony Pompigliano, co-founder of Morgan Creek Digital, indicated that the market may be at the start of a wave of companies adopting bitcoin and predicted that central banks would be the next institutions to adopt the cryptocurrency as a reserve asset.
Pompigliano stated:
"The most important fact about “Square” buying Bitcoin is that the company has announced practical documentation and strategy for buying Bitcoin.
Others are considering similar strategies."
Michael Saylor, CEO of MicroStrategy welcomed the news and congratulated the CEO of Square, commenting:
"Bitcoin is a good reserve asset.
I admire Jack and the Square team for leading this way."
Instant Bitcoin price interaction:
Bitcoin price reacted almost instantly to the announced news from Square and rose by $ 300.
In the last 24 hours, Bitcoin has risen 2.77%.
After several days of trading around the support level from $ 10,500 to $ 10,600, Bitcoin is now trading at $ 10,913 at the time of writing this article.
Trader Josh Rajer commented about Square's purchase and the bitcoin spike and thanked its CEO for pumping the bags.
On the other hand, a member of the cryptocurrency community noted that Square's shares have been on the rise since announcing the purchase of Bitcoin.
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