Payment company Square has revealed information about new investments in bitcoin. According to the press release, Square acquired another 3,318 BTC for a total of $ 170 million, bringing the average purchase price to $ 51,235 per BTC.
The company notes that, taking into account its previous investment, the amount of reserves invested in cryptocurrency has reached about 5%. On October 7, 2020, Square acquired 4,709 BTC for $ 50 million.The value of this investment has since grown to $ 226 million.
“In line with the company’s goals, Square sees cryptocurrencies as an economic empowerment tool that helps individuals participate in the international monetary system and shape their future. This investment was part of Square’s ongoing commitment to bitcoin. The company plans to value its total investment in bitcoin relative to other investments on an ongoing basis, ”the firm says.
Square also released financial statements for the fourth quarter and full year 2020. During this time, its clients purchased bitcoins for $ 1.76 billion and $ 4.57 billion through the Cash App, respectively.
“In 2020, we saw a significant increase in Bitcoin revenue over last year. Bitcoin sales revenue grew 9 times to $ 4.57 billion, and gross profit was only $ 97 million, or about 2% of revenue, adds Square. “The numbers rose on the back of increased Bitcoin-related activity and customer demand, as well as a significant rise in the price of Bitcoin.”
The company also cites statistics according to which over three million customers bought or sold bitcoin through the Cash App in 2020, and in January 2021, over a million customers purchased cryptocurrency for the first time. In addition, in the fourth quarter, the volume of transactions in bitcoin increased by more than two and a half times compared to the same period last year.
“This was primarily due to the activity aimed at buying bitcoin, while existing customers continued to buy it, and new ones did it even in larger volumes,” notes Square.