Jack Dorsey’s credit and payments firm Square has made another major investment in Bitcoin, more than tripling its last investment in the digital currency with a $170 million purchase of tokens.
Square purchased about 3,318 bitcoins at an average price of $51,236, the company disclosed in its quarterly earnings report on Tuesday.
“Combined with Square’s previous purchase of $50 million in bitcoin, this represents approximately five percent of Square’s total cash, cash equivalents, and marketable securities as of December 31, 2020,” the company announced.
The announcement comes weeks after Tesla chemical executive officer Elon Musk invested $1.5 billion in Bitcoin, which led to a surge in the price of the cryptocurrency. Bitcoin has maintained its growth since then.
The current price of a single bitcoin is just under $50,000.
“Aligned with the company’s purpose, Square believes that cryptocurrency is an instrument of economic empowerment, providing a way for individuals to participate in a global monetary system and secure their own financial future,” the company said.
“The investment is part of Square’s ongoing commitment to bitcoin, and the company plans to assess its aggregate investment in bitcoin relative to its other investments on an ongoing basis,” it added.
Earlier this month, Dorsey and rap artist Jay-Z announced to invest 500 Bitcoins (approximately Rs 174 crore) in an endowment to fund Bitcoin development with a focus on India and Africa in the beginning.