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Ahead of Tuesday’s fourth quarter earnings call, the payment company announced it had another 3318 BTC acquired as reserve assets

Payments giant Square announced Tuesday that it had bought an additional $ 170 million in Bitcoin (BTC), adding to the stash it bought in October

According to the payment service provider’s press release, the company has 3318 BTC added to his treasury for $ 170 million If you do the math, the purchase price per bitcoin is 51235 USD70

Unfortunately for Square, Bitcoin hit after a record high of over 58000 USD last weekend, a current low of 44$ 96449 before ricochet to about 48408 $ 31 at press time

When Square’s announcement was made just after 4 p.m. ET, the price of Bitcoin was below 48$ 000, which means this 3rd318 BTC were worth less than $ 160 million at the time

When the company announces that it has lost more than $ 10 million from its recent investment in BTC, it may inadvertently point out an argument JPMorgan analysts recently made about why they believe many are Companies won’t follow in the footsteps of Square and others (Tesla, MicroStrategy) who have added BTC to their Treasuries: the volatility of the cryptocurrency

Just prior to the release of its fourth quarter earnings call, the company announced that it had acquired the 4th Quarter, acquired in October 2020709 BTC, which at the time was worth $ 50 million, had topped up the current investment is worth $ 224 million USD and the total value of BTC on Square’s balance sheet is 394 million USD

Square has $ 4 billion in total cash and securities, so the $ 220 million spent on Bitcoin was only 5% of total cash at the end of the fourth quarter

UPDATE (Feb 23, 22:41 UTC): updates to reflect the change in value of Square’s investment UPDATE (Feb. 24, 02:25 UTC): Adds a paragraph about Bitcoin volatility

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World news – FI – Square buys another 170 million USD to Bitcoin – CoinDesk

Source: https://www.coindesk.com/square-announces-additional-170m-bitcoin-buy