Twitter founder Jack Dorsey announced the purchase of $50 million worth of 4709 BTC by his payment company Square. On this news, the bitcoin exchange rate rose to $10,935.
The management of the Square investment Department reported that this investment is 1% of the total value of Square’s assets for the second quarter of 2020. The company sees bitcoin as a tool for expanding economic opportunities and an alternative way to participate in the international monetary system, which is quite consistent with the company’s principles.
Jack Dorsey has always been a proponent of cryptocurrencies, and last week he called bitcoin and blockchain the “future of Twitter.”
“We are confident that bitcoin will soon be used everywhere, as it has the necessary makings for this. Square creates products with a broad reach, for any audience, so our investment in bitcoin is aimed at creating an innovative future for everyone,” said Amrita Ahuja, Square’s chief financial officer.
Square became the second public American company to invest in bitcoin. Earlier, the purchase of BTC was announced by MicroStrategy CEO Michael Saylor. The total amount invested by this company in BTC is about $410 million. According to Saylor, today bitcoin is the best asset for investment, unlike gold and the US dollar.
Last year, Jack Dorsey said that bitcoin is functional, but it is too early to consider it a currency. In addition, earlier this year, Square announced the creation of tools for implementing the Lightning Network.