Square's Bitcoin Investment: A Bold Move

On October 8, 2020, Square Inc., a payments platform, invested $50 million in Bitcoin, purchasing 4,709 bitcoins. This investment was part of a larger investment in cryptocurrency, representing about 1% of Square's total assets as of the end of the second quarter of 2020. Square's CEO, Jack Dorsey, has been a long-time supporter of Bitcoin, believing it will become the world's single currency in the future. Square's investment in Bitcoin underscores its belief in the potential of cryptocurrency as an instrument of economic empowerment and a way to participate in a global monetary system.

Square's $50 million investment in Bitcoin

On October 8, 2020, Square Inc., a financial services company led by Twitter co-founder and CEO Jack Dorsey, announced its purchase of approximately 4,709 bitcoins for $50 million. This investment represented about 1% of Square's total assets at the end of the second quarter of 2020.

Square's decision to invest in Bitcoin was driven by its belief in the potential of cryptocurrency as an "instrument of economic empowerment." In a statement, Square's Chief Financial Officer, Amrita Ahuja, expressed their view that "bitcoin has the potential to be a more ubiquitous currency in the future." This aligns with Dorsey's long-standing support for Bitcoin, stating in 2018 that he believes it will eventually become the world's single currency.

The investment is part of Square's broader strategy to embrace Bitcoin and blockchain technology. Square has previously enabled bitcoin trading on its Cash App, even for users without bank accounts, and formed Square Crypto in 2019, an independent team dedicated to contributing to bitcoin open-source work.

Square's large-scale investment in Bitcoin has had a positive impact on the cryptocurrency's value. After the announcement, the price of one bitcoin rose by more than 2% to around $10,900. This demonstrates the potential influence of institutional investors on the volatile cryptocurrency market.

Square's investment in Bitcoin highlights the growing acceptance and legitimacy of Bitcoin as a global currency and the potential for wider adoption in the future. It remains to be seen whether other major companies will follow Square's lead and invest in Bitcoin, further boosting its value and mainstream adoption.

Square's belief in Bitcoin's future as a global currency

On October 8, 2020, Square Inc. invested $50 million in Bitcoin, purchasing approximately 4,709 bitcoins. This investment represented about 1% of the company's total assets at the end of the second quarter of 2020.

Square's decision to invest in Bitcoin underscores its belief in the cryptocurrency's potential to become a more ubiquitous global currency in the future. In a statement, Square's Chief Financial Officer, Amrita Ahuja, articulated this belief, stating:

> "We believe that bitcoin has the potential to be a more ubiquitous currency in the future. As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey."

Square's founder and CEO, Jack Dorsey, has been a longtime supporter of Bitcoin. He has expressed his view that Bitcoin will eventually become the world's "single currency", although he noted that this could take up to a decade. Dorsey recognizes the potential benefits of Bitcoin or another cryptocurrency serving as a global currency, lowering the barrier for his payments company to enter new markets.

Square has previously shown interest in Bitcoin and cryptocurrency. In 2018, the company added Bitcoin trading to its Cash App, enabling users to buy and sell Bitcoin. Additionally, Square Crypto was launched in 2019 as an independent team dedicated to contributing to bitcoin open-source work. Square also formed the Cryptocurrency Open Patent Alliance (COPA), a non-profit organization that encourages crypto innovation and open access to patented crypto inventions.

Square's previous investments in Bitcoin

Square Inc.'s interest in Bitcoin is not a recent development. The company has been making moves in the cryptocurrency space since 2018. In 2018, Square expanded its mobile payment service, Cash App, to support bitcoin trading, even for users without a bank account. This move allowed Square Cash app users to trade Bitcoin aggressively in the second quarter of 2020, and all that volume benefited the payments company.

In 2019, Square launched Square Crypto, which awards grants to bitcoin developers and designers, and contributes to bitcoin open-source work for the benefit of all. The company also formed the Cryptocurrency Open Patent Alliance (COPA), a non-profit organisation encouraging crypto innovation and opening access to patented crypto inventions.

Square's founder and CEO, Jack Dorsey, is a long-time advocate of bitcoin. Dorsey believes that bitcoin will eventually become the world's "single currency", although he has said that this may take up to a decade. As the founder of Twitter and CEO of Square, Dorsey's support for bitcoin has been significant in raising its profile.

On October 8, 2020, Square announced that it had purchased approximately 4,709 bitcoins at a total cost of $50 million. This investment represented about 1% of Square's total assets as of the end of the second quarter of 2020. Square's Chief Financial Officer, Amrita Ahuja, said that the company believed "bitcoin has the potential to be a more ubiquitous currency in the future".

Square's investment in bitcoin is aligned with its purpose of economic empowerment, providing a way for people around the world to participate in a global monetary system.

Bitcoin's price rise after Square's investment

On October 8, 2020, Square Inc. announced a $50 million investment in Bitcoin, purchasing approximately 4,709 bitcoins. This investment represented about 1% of Square's total assets at the end of the second quarter of 2020. The price of Bitcoin at the time was around $10,700, having risen from $7,100 in January and briefly dipping below $5,000 in March during the recession.

Square's investment in Bitcoin was based on the belief that cryptocurrency is an instrument of economic empowerment and provides a way for individuals to participate in a global monetary system. Square's Chief Financial Officer, Amrita Ahuja, stated that the company saw Bitcoin's potential to become a more ubiquitous currency in the future.

Following Square's initial investment, the price of Bitcoin continued to rise. By February 2021, the digital currency had reached an all-time high of just over $58,000. This surge in value led to Square making another significant investment in Bitcoin, purchasing approximately 3,318 bitcoins for $170 million. This additional investment demonstrated Square's ongoing commitment to Bitcoin and its belief in the potential of cryptocurrency.

The impact of Square's investments on the price of Bitcoin is difficult to isolate, as various factors influence the volatile cryptocurrency market. However, Square's support and adoption of Bitcoin likely contributed to the increased attention and value of the digital currency. As a prominent financial services company, Square's endorsement may have encouraged other businesses and individuals to explore Bitcoin, driving up demand and contributing to the rise in Bitcoin's price.

Overall, Square's investments in Bitcoin, particularly the initial $50 million investment, coincided with a period of price appreciation for the digital currency. While other factors were also at play, Square's support and belief in Bitcoin's potential likely played a role in its price rise and increased mainstream adoption.

Square's CEO Jack Dorsey's support for Bitcoin

On October 8, 2020, Square, Inc. announced it had purchased 4,709 bitcoins for $50 million, representing about 1% of the company's total assets as of the end of the second quarter of 2020. This investment was part of Square's larger investment in cryptocurrency, with the company stating its belief that "bitcoin has the potential to be a more ubiquitous currency in the future."

Square's founder and CEO, Jack Dorsey, has been a longtime supporter and advocate of Bitcoin. In 2018, Dorsey predicted that Bitcoin would eventually become the world's "single currency," although he noted that this could take up to a decade. Dorsey's support for Bitcoin is aligned with his vision for a more inclusive future in the financial industry. He has also personally invested in Bitcoin and has been involved in other initiatives to promote the use and development of Bitcoin and blockchain technology.

In May 2023, Dorsey donated $10 million to the non-profit OpenSats to help turn Bitcoin into "the native currency of the Internet." This donation included $5 million set aside to fund the development of Nostr, a social protocol that enables software developers to integrate Bitcoin payments into their applications. Dorsey's support for Bitcoin also extends beyond his role as CEO of Square. In May 2022, prior to leaving Twitter, he conceived of and invested $13 million in an open-source social protocol that would allow users to move their profiles between competitors. This project, now being developed by Bluesky, demonstrates Dorsey's commitment to decentralised social media platforms and his belief in the potential of Bitcoin and blockchain technology.

Dorsey has also been involved in legal cases related to Bitcoin. In February 2024, he backed a case seeking a court ruling on the identity of Bitcoin's founder, Satoshi Nakamoto. The case challenged the claims of Australian computer scientist Craig Wright, who asserted himself to be the real Satoshi Nakamoto. Dorsey's payment company, Block, and the cryptocurrency exchange Coinbase, were members of the Crypto Open Patent Alliance (COPA), which sought a "negative declaration" that Wright was not Nakamoto. COPA argued that a ruling in their favour would prevent Wright from challenging people developing Bitcoin-related projects.

In addition to his investments and legal support, Dorsey has also made predictions about the future price of Bitcoin. In May 2024, he predicted that the price of Bitcoin would exceed $1 million by 2030. This bold prediction underscores Dorsey's confidence in the potential of Bitcoin as a global currency and its ability to disrupt traditional financial systems.

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