Square buys 4,709 bitcoins for $50 million on the potential it will be a 'ubiquitous currency' (SQ)

Tom Williams/CQ Roll Call

• Square said on Wednesday it purchased 4,709 bitcoins at an aggregate purchase price of $50 million.
• The digital payments company said the investment represents approximately 1% of Square's total assets at the end of the second quarter of 2020.
• Square sees potential for bitcoin to become "a more ubiquitous currency" in the future, the company said.
• The direct investment into bitcoin builds upon its previous investments in the crypto industry.
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Square jumped as much as 3% on Thursday after it announced it had purchased 4,709 bitcoins for an aggregate price of $50 million.

Square paid an average price of $10,617 for each bitcoin. The company said it was able to make the $50 million purchase within a day without disrupting the markets.

The firm said its investment in the digital currency represents approximately 1% of its total assets at the end of the second quarter of 2020. 

Square's Chief Financial Officer Amrita Ahuja said that bitcoin "has the potential to be a more ubiquitous currency in the future."

This isn't the first time Square got involved in bitcoin. In 2018, it launched the ability to buy and sell bitcoins within its Cash app, and in 2019, the company formed Square Crypto, a team solely focused on open-source work in the crypto space. 

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"As it [bitcoin] grows in adoption, we intend to learn and participate in a disciplined way," Ahuja said.

Square said the investment aligns with its purpose of enabling everyone the ability to participate and thrive in the economy. 

"Square believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system," the company said. 

Bitcoin jumped as much as 3% in Thursday trades to $10,957. 

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