Square invests $50 mn in Bitcoin; a step towards economic empowerment & inclusiveness

By Pavithra R

Square, building simple tools to help people participate and thrive in the economy, has announced that the company has purchased approximately 4,709 bitcoins at an aggregate purchase price of $50 million.

According to Square, cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s mission.

The company has previously invested in bitcoin from a product, leadership, and legal innovation perspective, and this announcement adds its financial investment. The investment represents approximately 1% of Square’s total assets as of the end of the second quarter of 2020.

Square has been actively involved in the bitcoin space since 2018 through its Cash App product, which provides customers with the ability to buy and sell bitcoin. The firm, believing in bitcoin’s potential has also formed Square Crypto in 2019, an independent team solely focused on contributing to bitcoin open source work for the benefit of all and has recently launched the Cryptocurrency Open Patent Alliance (COPA), a non-profit organization encouraging crypto innovation and opening access to patented crypto inventions.  

Although this investment is held in cold storage to further protect its bitcoin holdings, Square maintains a Crime insurance policy to protect against internal or external theft of bitcoin both in hot wallet and cold storage.

“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,” said Square’s Chief Financial Officer, Amrita Ahuja. 

Recently, Square launched QR-based self-serve ordering feature for restaurants.

Founded in 2009, San Francisco based Square builds tools to empower businesses and individuals to participate in the economy. The company has offices in the United States, Canada, Japan, Australia, Ireland, Spain, and the UK.