By
Bena Ilyas
April 18th, 2024
TBD will be joining other Square lines of businesses including Cash App, Square Seller, and the Tidal streaming service.
Square Inc (NYSE: SQ) is set to create a new business unit dubbed TBD with a primary focus on Bitcoin, Twitter CEO Jack Dorsey announced yesterday. According to the tweets, the new business unit will build an open developer platform to make financial services more decentralized, permissionless, and non-custodial.
Square is creating a new business (joining Seller, Cash App, & Tidal) focused on building an open developer platform with the sole goal of making it easy to create non-custodial, permissionless, and decentralized financial services. Our primary focus is #Bitcoin. Its name is TBD.
— jack (@jack) July 15, 2021
Consequently, TBD will be joining other Square lines of businesses including Cash App, Square Seller, and the Tidal streaming service.
With a $108.83 billion market valuation, Square will have diversified more to increase its revenue collection. Furthermore, the company noted earlier through its CFO it will not be purchasing more Bitcoins after making a $20 million loss in the first quarter.
Bigger Picture on Square New Business Unit TBD
Crypto investor Pompliano referred to Dorsey as a ‘legend’ for creating a business unit with a sole focus as Bitcoin. Square stock reacted positively to the news as they added approximately 0.78% during the extended trading session to trade around $237. Notably, SQ stock closed Thursday trading at $235.16, down 1.61%.
According to metrics provided by MarketWatch, SQ stocks have added approximately 94.78%, and 8.05% in the past year and year-to-date respectively through Thursday. However, during the past three months, one month, and five days, SQ stock has dropped approximately 8.18%, 0.80%, and 2.78% respectively.
Direct investment in Bitcoin puts Square stock market directly affected by the BTC market volatility. The company has however invested in payment services, thus making its investment diversified.
Notably, the new business venture TBD will be headed by Mike Brock. According to Dorsey, the business unit will be open, with the roadmap available for the public to view. “Like our new #Bitcoin hardware wallet, we’re going to do this completely in the open. Open roadmap, open development, and open-source,” Dorsey noted in the tweets.
Square announced earlier last month plans to develop a hardware wallet for cryptocurrencies. According to the team behind the hardware wallet, security is the top priority and also the user interface to make Bitcoin more mainstream. Mind you, Twitter was hacked last year resulting in critical account takedowns that ended up with some crypto users being scammed.
The announcement follows a Bitcoin multi-week correction that has seen the asset trade on a support level of around $31k. From a technical point of view, Bitcoin is retesting critical support made at the beginning of the year. Should the asset respect the support level, the crypto industry is likely to experience another bull market in the coming weeks.
The view is reiterated by the daily RSI indicator that shows a rising divergence, indicating a strong upside shift.