The recent rally in Bitcoin has allowed Jack Dorsey's fintech firm Square to double its investment in the popular cryptocurrency. The company had invested a total of $220 million (Rs. 1,650 crores) in Bitcoin, which is now worth over $470 million (Rs. 3,526 crores), according to a report. A large part of the rise in the value of Square's holdings was primarily due to a big rally in the price of Bitcoin over the past month. Bitcoin was trading under $50,000 (Rs. 37.51 lakhs) a month ago, but it was trading around $62,000 (Rs 46.52 lakhs) on Saturday, which is a rise of nearly 25 percent.
According to a report in Bitcoin Magazine, Square holds nearly 8,027 Bitcoins, acquired at an aggregate purchase price of $220 million and an average price per Bitcoin of $27,407 (Rs. 20.56 lakhs), inclusive of fees and expenses.
Square first announced it had purchased 4,709 Bitcoins at an aggregate purchase price of $50 million (Rs. 375 crores) in October 2020. In the full-year 2020 report, the company said it had purchased approximately 3,318 Bitcoins at an aggregate purchase price of $170 million (Rs. 1,275 crores). Of the other companies – MicroStrategy and Tesla -- whose Bitcoin investments recently doubled, Square has acquired its Bitcoin for the lowest average price per coin, the report said. Bitcoin price in India was around Rs. ₹ 47.7 lakhs at the of writing this copy.
Jack Dorsey, the CEO and Co-Founder of Twitter, has been very bullish on Bitcoin and has often supported the cryptocurrency on the social media platform. Recently, he said Square, a San Francisco-based startup, is considering venturing into the Bitcoin mining system for individuals as well as businesses worldwide. “If we do this, we'd follow our hardware wallet model: build in the open in collaboration with the community,” Dorsey said in a tweet.
Square is considering building a Bitcoin mining system based on custom silicon and open source for individuals and businesses worldwide. If we do this, we'd follow our hardware wallet model: build in the open in collaboration with the community. First some thoughts and questions.— jack⚡️ (@jack) October 15, 2021
Dorsey launched Square in 2009, bringing together aggregating merchant services and mobile payments into a single, easy-to-use service.
Square POS lets customers pay, tip, and sign on a merchant's mobile phone or tablet, and merchants can process payments made with credit cards, gift cards, and cash. Business owners can also use the app to send and track invoices, access real-time sales data, and track inventory in real-time.