Twitter CEO Dorsey’s Square firm invests $170M in Bitcoin

"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.

San Francisco: Twitter CEO Jack Dorsey’s credit and payments firm Square has invested $170 million in Bitcoin, more than tripling its last investment in the cryptocurrency.

The company purchased about 3,318 bitcoins at an average price of $51,236, the company disclosed in its quarterly earnings report on Tuesday.

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“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 has come at a time when the Bitcoin value has surged dramatically over the past few months, setting new records. 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.

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.

Dorsey, like Tesla CEO Elon Musk, has made no secrets about his passion for Bitcoin.

The Twitter CEO had earlier said that Bitcoin for him is like poetry and that he sees ample opportunity for Bitcoin to bring about a sea change in the world.

Meanwhile, Musk, who has been tweeting on cryptocurrencies with greater frequency for some time now, has said that prices of Bitcoin now “seem high”.

His comments came after Bitcoin’s total market value passed $1 trillion for the first time last week.

Tesla earlier this month revealed that it has invested $1.5 billion in Bitcoin, leading to a surge in the prices of the cryptocurrency.