Square still interested in Bitcoin but not revisiting its allocation

Square still interested in Bitcoin but not revisiting its allocation

Over $200 million worth of Bitcoin (BTC), was bought by Square in the course of 2020 and 2021 and the  Square, which is a payment company is not interested in further picking of the asset as averred by Amrita Ahuja, the Chief Financial Officer of Square.

In the words of Ahuja:

We don’t have any plans at this point to make further purchases.” She added: “There’s no plans at this point to re-evaluate where we are from a treasury standpoint

In October 2020, Square announced buying $50 million worth of Bitcoin, which equated to 4,709 BTC, given the asset’s prices back then. In February, the company announced picking up $170 million worth of additional Bitcoin, which paid for roughly 3,318 coins.

May has hosted sideways and downward price action from Bitcoin, although Square has still seen some significant profit from its BTC holdings. “In Square’s most recent quarterly earnings, published on 6 May, the company said it had lost $20m on its bitcoin investment despite its fair value rising to $472m based on market prices,” Financial News detailed.

Square’s Bitcoin involvement does not stop at its purchasing of the asset, however. The company’s Cash App facilitates free Bitcoin transactions, unveiled in March, as per Square’s May 6 earnings document. Square’s Cash App also hosts Bitcoin trading.

“Lots of other opportunities for [Square] to learn with bitcoin” exist, Ahuja told Financial News following her comments on the company’s stance on its Bitcoin holdings.

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