A $50 Million purchase of Bitcoins would stir every nuke and corner of the crypto industry, Something similar happened when the payments processing company Square announced doing the same; the ripples in the crypto space were inevitable. The company revealed that it procured around 4709 Bitcoins, approximately worth 50 million making it one of the top Bitcoin players. It added that its Cash App which allows the users to trade in bitcoin had garnered immense success, making it the most sought-after crypto enterprise.
Uncertainties Associated with Traditional Currencies Give Bitcoin A Boom
The cryptocurrency markets have huge chances of getting mainstream considering the potential uncertainties of the traditional currencies and economies. Square wants to increase its financial stakes by extended investment in bitcoin. The company also said that they want to tap into Bitcoin’s potential to revolutionize the global economy and ensure financial security. The company made this huge investment to safeguard its future.
Square Published a ‘Tell-All’ Open Source Whitepaper
As per the Whitepaper, Square purchased the $50 Million worth bitcoins through an OTCservice. Detailing the service, they said that they prudently negotiated a spread on top of the public bitcoin token index and did trades or the TWAP (Time-weighted Average Price) for 24 hours to curtail cost and pricing risks.
Reportedly Square converted 1% of its assets in Bitcoin, raising the BTC token price substantially by 2.5 percent on Thursday. The BTC skyrocketed to $10962 and closed at a high of $10890 after the announcement.
Square Looks Up To Bitcoin as A Potential Financial Game Changer
The CFO of Square, Amrita Ahuja, said that “For a company that is building products based on a more inclusive future, this investment is a step on that journey.”. The increased inclination of the mainstream financial companies in cryptocurrencies is a welcome sign for the thriving crypto industry with Bitcoin taking the lead.
Jack Dorsey, the CEO of Square, has been an avid supporter of bitcoin and cryptocurrencies wherein he even went to the extent of saying that BTC can become the world’s single regulated currency in the next few years. He proclaimed that the Bitcoin technology could be transformational for the financial industry, and Square wants to ace it fast.
Let us wait and watch out how many other mainstream companies move to Bitcoin for financial security in the near future, taking Square’s example.