Fintech payments platform, Square recently announced the purchase of $50 million in bitcoin, which is a huge part of its cryptocurrency investment. It has bought close to 4,709 bitcoins, equivalent to one percent of its total assets as of the second quarter. Post this announcement, the price of bitcoin rose to about $10,900.
Jack Dorsey says digital currency has the potential to be a global currency in future
Square has accepted bitcoin as a form of payment since 2014 and believes that it has the potential to be a global currency in the future. According to CoinDesk, digital currency price has risen in January from $7,100 to $10,724. Though, it did suffer a price drop below $5,000 due to the recession following the coronavirus pandemic in March.
CEO of Twitter and Square, Jack Dorsey has always been an advocate of digital currency. In 2018, he said that cryptocurrency will soon become the world’s single currency however he also said that it could take a decade to happen.
Square’s Cash app reports $875 million in bitcoin revenue for Q2 2020
In 2018, Square added bitcoin to its Cash app. Last year, it formed an independent team, Square Crypto, to work towards bitcoin open-source work. Recently, it also launched a non-profit cryptocurrency open patent alliance. It focuses on keeping the open-sourcing nature of cryptocurrency active by putting together patents in a shared library that protect from patent aggressors.
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The payment platform’s Cash app reported around $875 million in bitcoin revenue and $17 million of bitcoin gross profit for Q2 2020. It had made a bitcoin revenue of $306 million for the first quarter, an increase of close to 367 percent from the previous year quarter. The company stated that it attributed its growth to an increase in the number of active bitcoin customers and customer demand.
COVID-19 pandemic caused a shift to card payments, says payments platform Square
Found in 2009 in Silicon Valley, Square has set up its offices in the United States, Canada, Australia, Ireland, Spain, Japan, and the UK. It is the second publicly traded company to make such a bitcoin purchase. Before that, MicroStrategy, a Virginia-based software intelligence company, made a purchase of $250 million in bitcoin.
The company said that the coronavirus pandemic has caused people to move towards digital transactions and card payments. Since August, its cash transactions have dropped to nearly 41 percent as compared to the same period last year.