By
Tolu Ajiboye
April 23rd, 2024
Square announced an additional Bitcoin (BTC) purchase of $170 million buying the dips after BTC price crashed sub $46K levels on Tuesday in a marketwide correction.
As Bitcoin (BTC) enters a steep correction on Tuesday, February 23, big corporates jump in to make the most of the buying opportunity. Seizing once such opportunity, Jack Dorsey-backed Square Inc announced its fresh $170 million Bitcoin purchase.
Also, the recent announcement comes as part of Square unveiling its Q4 2020 results. The Square Cash App is quite popular among crypto investors and offers quite an intuitive interface to trade crypto. It turns out that more than 3 million customers trade Bitcoin last year in 2020. Also, over 1 million customers purchased Bitcoin (BTC) for the first time last month in January 2021.
Square and Bitcoin
During the last quarter of 2020, the Square Cash App registered a Bitcoin revenue of $1.76 billion, nearly 10x YoY. The official press release from Square Inc states:
“Aligned with the company’s purpose, Square believes that cryptocurrency is an instrument of economic empowerment, providing a way for individuals to participate in a global monetary system and secure their own financial future. 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 latest Bitcoin (BTC) purchase from Square comes after its $50 million initial investment last year in October 2020. with the latest investment, Square added 3318 Bitcoins to its kitty. This is nearly 5% of Square’s total cash, cash equivalents and marketable securities.
Bitcoin (BTC) Rebounds Above $50,000
Crashing all the way under $46,000 on Tuesday, February 23, Bitcoin (BTC) has once again rebound to above $50,000 levels today. At press time, Bitcoin’s (BTC) price is trading at $50,436 with its market cap of $938 billion.
Even at today’s price, BTC is up 66% year-to-date with a strong institutional interest. However, the recent price correction seems to happen after Bitcoin whales have been liquidating their holdings. However, over the last year, Bitcoin whales holding between 1K-10K BTC have grown in number. The data from Glassnode notes:
“Wallets with 1k to 10k BTC holdings in particular have been in a strong uptrend since March 2020, having increased by 14.18% between 12-Mar-20 and 5-Feb-21. This has been referred to as ‘Bitcoin whale spawning season’ as these addresses represent holdings of millions to hundreds of millions of dollars (considering price rallying from $3.8k to $58k in that time).”
But the same data further notes that Bitcoin whales have been on a selling spree while selling BTC this month. But institutional made the most of the Bitcoin dip. Another data from Glassnode states that the Purpose Bitcoin ETF added 2251 Bitcoins during Tuesday’s market correction. This took its net assets under management above half-a-billion dollars.