The most recent Bitcoin dip was arguably the best buying opportunity for many investors. At this point, Bitcoin has been accepted enough that it’s not going to crash completely. And it still has a lot of space to grow, and so it makes sense for investors to buy BTC and hold for huge gains. One such investor is Square that has brought $170 million of Bitcoin during the dip to boost its holdings. This investment of the company brings their total holdings to 5% of their cash and cash equivalents.
Square’s $170 million worth Bitcoin purchase decision
The company believes very strongly in Bitcoin and its future. Square considers Bitcoin to be the path of economic empowerment and thinks it to be a way to secure one’s financial future. Presently, the company holds about 3318 bitcoins at an average price of $51,235 per coin. And this is just a part of their commitment to cryptocurrency. This is because Square plans on buying more Bitcoins as time goes on and keep averaging their purchase price. This is a good move by the company, as there are going to be a lot of buying opportunities even in the future, and I am sure that Square would want to invest more in cryptocurrency then.
Michael Saylor, the CEO of Microstrategy, was one of the first to go on Twitter and appreciate Square’s most recent purchase. He was the first CEO to add Bitcoin to the balance sheet of a public traded company. Michael is a big enthusiast and an avid believer in cryptocurrency. A while back, he also said that other companies are also going to follow suit and add BTC to their balance sheets, like Tesla and Square.
Square announced today that it has purchased ~3,318 bitcoins at an aggregate purchase price of $170 million. Combined with Square’s previous purchase of $50 million in #bitcoin, this represents ~five percent of total cash, cash equivalents & marketable securities as of 12/31/2020
— Michael Saylor⚡️ (@saylor) February 23, 2021
Square had initially purchased around $50 million worth of Bitcoin in October 2020. And that was only 1% of the company’s entire capability of purchase. And so the recent investment too was just a fraction of their capability.
Bitcoin’s fall
After the comments made by Elon on Twitter, Bitcoin and other cryptocurrency prices tumbled. He said, “That said, BTC & ETH do seem high lol”. And this statement of his was enough to pull down Bitcoin from an all-time high of $58,000. The recent legal issue of Tether that just got settled yesterday was also one of the reasons why Bitcoin had a bearing market for two long days.
Now the price of the currency has again managed to climb back above $50,000, which is an important support for Bitcoin. Let’s see how long it takes for Bitcoin to reach back to where it left and again make an all-time-high. I am sure we are just a week or two away from that.
What are your thoughts on the $170 million Bitcoin purchase made by Square? Let us know in the comments below. Also, if you found our content informative do like it and share it with your friends.
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