Bitcoin has received another vote of confidence from a heavy hitter, with the news that Square has purchased $170 million worth of the cryptocurrency.
The company, run by Twitter chief Jack Dorsey, said it bought approximately 3,318 bitcoins in its fiscal fourth-quarter financial report released Tuesday.
In October 2020, Square purchased 4,709 coins and said the overall investment represented about 5% of the company’s total assets as 2020 ended.
“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,” the company said in its earnings release.
Dorsey is one of many turning toward bitcoin.
Tesla announced its $1.5 billion investment earlier this year.
MicroStrategy also has been heavily invested, announcing Wednesday a purchase of another $1 billion worth of bitcoin. The enterprise software firm’s shares are way up – about 400% according to a CNBC story – since the company first bought into bitcoin last August.
Bitcoin’s price climbed as high as $51,369 early Wednesday following last week’s abrupt sell-off, and was up more than 5.4% at $49,734 as of about 1:30 p.m. ET.
Notoriously volatile, bitcoin is up more than 70% year-to-date and over 400% in the past 12 months. Its future has been the topic of active debate, all the way up to opinions from U.S. Treasury Secretary Janet Yellen.
Yellen called bitcoin an “extremely inefficient” means of payment and warned about its drawbacks.
“It is a highly speculative asset and … I think people should be aware it can be extremely volatile,” the former Federal Reserve chair said at a New York Times DealBook conference. “I do worry about potential losses that investors can suffer.”