Square Says It Bought $50 Million of Bitcoin

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Quote from: mk4 on October 12, 2020, 10:40:19 PM

Quote from: tyz on October 09, 2020, 05:17:56 AM

It would be interesting to know why Square made this investment. Purely for investment reasons or are there plans to integrate Bitcoin into its payment service.
Unfortunately the statement does not give any information about this. The latter would be very interesting.

Square made a really really short post on why they allocated $50m of their cash holdings into bitcoin: https://squareup.com/us/en/press/2020-bitcoin-investment

“We believe that bitcoin has the potential to be a more ubiquitous currency in the future,” said Square’s Chief Financial Officer, Amrita Ahuja. “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.”

It's refreshing to see big billion dollar corporations beginning to realize the potential of Bitcoin and seeing it as a very big investment opportunity for the future.
When massive corporations buy in it improves the trust for the general public not that this should be how it is.

mk4

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Quote from: tyz on October 09, 2020, 05:17:56 AM

It would be interesting to know why Square made this investment. Purely for investment reasons or are there plans to integrate Bitcoin into its payment service.
Unfortunately the statement does not give any information about this. The latter would be very interesting.

Square made a really really short post on why they allocated $50m of their cash holdings into bitcoin: https://squareup.com/us/en/press/2020-bitcoin-investment

“We believe that bitcoin has the potential to be a more ubiquitous currency in the future,” said Square’s Chief Financial Officer, Amrita Ahuja. “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.”

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Quote from: tyz on October 09, 2020, 05:17:56 AM

It would be interesting to know why Square made this investment. Purely for investment reasons or are there plans to integrate Bitcoin into its payment service.
Unfortunately the statement does not give any information about this. The latter would be very interesting.

It could be for speculative reasons. There are projections that the price will hit an ATH again. Another reason is that soon, all mined bitcoin will be in peoples hand soon, knowing that more than half has been mined. So this could be the right time to get a chunk of the bitcoin because it will be scares soon.

traderethereum

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I heard that news. At least, it could bring a new way for people to know if bitcoin can be a new investment.
Maybe that news affected bitcoin price, increasing and breaking $11k, but we need to be careful because it seems this price can be down again.
But if we check on the trend, the chart line moves to a high price, which is a good move for bitcoin.
At least, this month, we can hope that bitcoin prices can still increase so high.
The next barrier will be at $11,500 that bitcoin price almost touches according to poloniex.
So we can hope that tomorrow will be the time for bitcoin to jump and break $11,500 and still increase to the $12k.

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Quote from: Darkelf11 on October 11, 2020, 03:43:03 AM

A big move for a company, however we cannot yet tell that this investment made by them will cause big impact to bitcoin's value.

Actually it did have an impact, bitcoin was trading on the lower range of $10,000 before the news broke and spike the price to $11,400 before the correction step in. It did affect some alts too as majoriuif them saw a spike in price too mostly due to bitcoin increase and not the news directly. In my opinion, the amount bought was just too small for a company as big as that but it could be Jack was just taking some precautions measures since the uncertainty of the market is at its peak.

The reaction from the market just showed the market was waiting for any news to follow. Assuming it was a negative news it would had crashed the market just as it did with the trump's news of him having the coronavirus. 4700+ bitcoin ($50million) is a small amount to have much impact as it did on the market. Considering the bitcoin market is over billions of dollars.

Quote

We cannot quite guarantee that it will reach highest it's highest point value because of these one

Don't think there was any attempt by Jack to create FOMO in the market and spike the price to its previous all time high, if that was his intention then $50millions was too small to do the trick.

3meek

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By the way, here is an interesting article about Square bitcoins purchase!
Indeed, this news has received too much attention, which may give rise to some thought...

rodskee

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This is just the beginning. I am sure that large corporations are also thinking about buying crypto, unless of course they did it earlier hiding it from everyone.

I don't know why companies will need to Hide if they already invested in crypto unless it is forbidden in their country.

But company like this will be proud to broadcast their investments as this will favor them for their co company and will trust them as they had already vested good amount inside this new investing area.

Quote from: Darkelf11 on October 11, 2020, 03:43:03 AM

A big move for a company, however we cannot yet tell that this investment made by them will cause big impact to bitcoin's value. We cannot het guarantee that it will reach highest it's highest point value because of these one, contrary to what Yoshie just told us. Bitcoin is a good long term investment, but things are not always guaranteed.

Obviously they impacted the market,this is the reason of the small pump since yesterday,or maybe their positive approach in bitcoin.

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Quote from: mk4 on October 10, 2020, 10:53:45 PM

Quote from: tyz on October 09, 2020, 05:17:56 AM

It would be interesting to know why Square made this investment. Purely for investment reasons or are there plans to integrate Bitcoin into its payment service.
Unfortunately the statement does not give any information about this. The latter would be very interesting.

Square is co-founded by Twitter's CEO, Jack Dorsey. Why did he make that investment? Well, take a quick look at Jack's Twitter profile and that'll quickly answer your question: https://twitter.com/jack

Yeah, I wasn't surprised with this news given that Jack Dorsey has been pro-Bitcoin for a while. And Square supports Bitcoin trading, also profiting from it significantly this year if I remember correctly. So it's probably a reasonable decision. And it shouldn't be compared with companies having nothing to do with finances and cryptos investing big shares of their overall money into Bitcoin. That's risky and a big step. This purchase is more reasonable and aimed at promoting Bitcoin, making it more accessible to people, rather than hoping it'll grow and bring huge profit to the company.

Darkelf11

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A big move for a company, however we cannot yet tell that this investment made by them will cause big impact to bitcoin's value. We cannot het guarantee that it will reach highest it's highest point value because of these one, contrary to what Yoshie just told us. Bitcoin is a good long term investment, but things are not always guaranteed.

YOSHIE

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Quote from: DougM on October 08, 2020, 06:42:08 PM

Another investment in bitcoin by another big company Cool

That's good what Square does by buying $ 50 thousand Bitcoin, try to imagine if 1000 people or company have in this world have ideas and thoughts like Square, by buying $ 50 thousand each person, what do you imagine...!

I guarantee you will regret seeing Bitcoin reach its highest point, because you haven't bought it yet.

Therefore, follow the route taken by Square to Bitcoin, before it's too late and sorry, don't you just look at what Square is doing, do it like he did.

Shadikjitu11

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Another great news for cryptocurrency. " Square believes that cryptocurrency is an instrumentof economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company's purpose.

mk4

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Quote from: tyz on October 09, 2020, 05:17:56 AM

It would be interesting to know why Square made this investment. Purely for investment reasons or are there plans to integrate Bitcoin into its payment service.
Unfortunately the statement does not give any information about this. The latter would be very interesting.

Square is co-founded by Twitter's CEO, Jack Dorsey. Why did he make that investment? Well, take a quick look at Jack's Twitter profile and that'll quickly answer your question: https://twitter.com/jack

goldade

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This is amazing for the crypto community. A huge company such as Square adopting bitcoin is a huge leap forward towards the mass adoption of bitcoin and crypto in the mainstream world.
Although $50 million is a huge sum of money to invest in bitcoin, it is very unlikely it will cause a change in the market value of bitcoin.
The market is worth billions of dollars and $50 million is only a small fraction of it so its effect will be very minimal.
I, however, do believe several companies will take this as an example and follow suit. At this rate, it's only a matter of time before bitcoin becomes adopted by everyone.

mardaed

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Though it's quite big for us but it is only 1% of their total assets as of the end of second quarter in 2020, so I guess they have a big reason behind this action aside from their
statement that their actions aligns with their company's purpose.

I am not sure if it is part of their marketing plan to boost their company or etc. but what I am pretty sure is that they have deep reason behind this action. But still as a crypto user. I can say that their action can really help the crypto market to become lively again.

3meek

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Quote from: tyz on October 09, 2020, 05:17:56 AM

It would be interesting to know why Square made this investment. Purely for investment reasons or are there plans to integrate Bitcoin into its payment service.
Unfortunately the statement does not give any information about this. The latter would be very interesting.

Because Jack Dorsey is an old supporter of Bitcoin! And now he confirms his position and confidence in the good prospects of this asset!
Big companies never invest for no reason! Wink

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Quote from: BlackHatCoiner on October 09, 2020, 06:38:15 AM

Quote from: tyz on October 09, 2020, 05:17:56 AM

Purely for investment reasons or are there plans to integrate Bitcoin into its payment service.

Don't they already have that? (through CashApp)

I have not used Square before. The fact that I haven't heard much about it being able to pay with Bitcoin leads me to the conclusion that it is not a very popular payment method on the platform. Therefore it could be that the investment indicates that Square now wants to support this payment method more strongly and may even want to integrate new functionalities, such as Lightning.

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Quote from: ?? on ??

What would Square do with 50mil worth of Bitcoin? What are they working on or planning to do?

For business? They have cash app, which can be used to buy and sell bitcoin in the US and UK so that's the best thing to do and/or reserve fund against inflation since USD will be devalued more and more.

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Quote from: TryNinja on October 08, 2020, 07:07:40 PM

That's just the start. A cool website to keep looking at: https://bitcointreasuries.org

And an archive for the future: https://archive.is/hvBzj

Let's see how much it grows. Wink

Cool. Its 4,709 BTC.

Thats huge amount. BTC is one of the most sought investment for a company to position themselves in the next bullrun, it would be very interesting how much the prices will go in the next bullrun. More institutional investors should also follow what they are doing. The legitimacy of cryptocurrency had ben recognized since the time forex brokers had added them on thier list, I think we are up to making millions.

pixie85

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Even if they did a quick trade they made a lot of money because they bought OTC and when the news came out the price went up to form something of a breakout.

Of course if they are as real about the investment as it looks they'll hold it until the price moves above 20 thousand again and grab a nice big 25 mliion in profit. Not a bad move I guess Wink

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