Jack Dorsey, CEO of Twitter Inc. and Square Inc., speaks during an Empowering Entrepreneurs event at Ryerson University in Toronto, Ontario, Canada, on Tuesday, April 2, 2019.
Cole Burston | Bloomberg | Getty Images
Square bought Bitcoin worth $ 170 million, the company revealed in its fourth fiscal quarterly financial report on Tuesday.
The company said it bought approximately 3,318 bitcoins, expanding its October 2020 purchase from 4,709. Square said it accounts for about 5% of the company’s total assets by the end of 2020.
Bitcoin traded around $ 48,000 on Tuesday after the bell, up nearly 62% year-over-year.
“The investment is part of Square’s ongoing commitment to Bitcoin and the company plans to evaluate its aggregate investment in bitcoin relative to its other investments on an ongoing basis,” the company said in its earnings statement. His CEO, Jack Dorsey, also championed digital currency.
Companies are increasingly leaning towards Bitcoin as it becomes more commonplace. Tesla announced earlier this month that it bought Bitcoin worth $ 1.5 billion to “have more flexibility to diversify and maximize our cash returns.”
Dumping into digital currency carries risks, due to its volatility. The price of Tesla shares is now directly related to the price of Bitcoin, according to Wedbush analyst Daniel Ives.
Subscribe to CNBC on YouTube.