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Square Records 1 Million First-Time Bitcoin Buyers in January

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by Ibukun Ogundare · 3 min read
Square Records 1 Million First-Time Bitcoin Buyers in January
Photo: Unsplash

The CFO further revealed that Square’s Bitcoin investment represents 5% of the company’s cash. She noted that Square has a long-term vision on the investment.

The chief financial officer at Square Inc (NYSE: SQ) Amrita Ahuja, said that the company’s Cash App platform recorded 1 million new Bitcoin buyers in January 2021. The CFO revealed details of the surge in first-time Bitcoin buyers while speaking on CNBC’s Squawk Alley on the 24th of February.

Square: Increase in First-Time Bitcoin Buyers Number

As stated in a CNBC report, Ahuja said that 3 million people performed Bitcoin transactions through Square’s payment platform Cash App in 2020. She added that Cash App recorded 1 million new Bitcoin buyers last month.

During the period, Bitcoin rallied to new highs amid its increasing demand among both new and existing investors.

Bitcoin has been increasing over the past year, gaining more than 400%. Since the beginning of the year, Bitcoin gained more than 70%. The price of Bitcoin hit $40,000 in the first week of January, after trading below $30,000 on the 1st. On the 21st of February, Bitcoin reached a new all-time high of $58,000. At press time, Bitcoin is trading at $49,141.83.

In Square’s Cash App, users can perform peer-to-peer transactions, which allow them to buy and sell assets like Bitcoin and stocks. Square began giving most of its users access to buy and sell Bitcoin through its payment app Cash App in January 2018. Before then, Square had announced that it was testing its support for the digital currency. In reaction to the announcement in November 2017, Bitcoin spiked 10% to reach a record high. Bitcoin saw an uptrend in December 2017, reaching record levels towards the end of the year. However, the king coin plunged significantly in the subsequent year, shedding 80% of its value.

Bitcoin recorded huge gains in 2020 as institutional investors see the digital asset as a hedge against inflation. MicroStrategy (NASDAQ: MSTR), which has been acquiring large amounts of Bitcoin, also referred to the top coin as a store of value.

As of the 24th of February, MicroStrategy said it owns 90,531 BTC after a more recent acquisition worth more than $1 billion.

Square’s Bitcoin Investment

Amid the adoption of Bitcoin among high-profile investors, Square purchased 4,709 Bitcoins, worth approximately $50 million in October. Later., the company announced that it had purchased an additional 3,318 BTC worth $170 million. Now, Square holds a total of 8,027 Bitcoins.

Commenting on Square’s investment, Ahuja added:

“We feel that bitcoin is aligned with our purpose, which is economic empowerment. Economic empowerment is about bringing access to financial tools more broadly, including to people who haven’t had it before. We think Bitcoin is a way that could enable that for the future.”

The CFO further revealed that Square’s Bitcoin investment represents 5% of the company’s cash. She noted that Square has a long-term vision on the investment.

Square stock is currently at premarket trading of $238.10, a 0.33% gain over its previous close of $237.32. Despite its recent additions over the past months, SQ has declined more than 12% in the last five days.

Bitcoin News, Cryptocurrency news, News
Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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