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November 27, 2022
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Square does not plan new Bitcoin purchases

Square bought Bitcoin in October last year and has already made a considerable profit

Amrita Ahuja, investment director at payments company Square, recently told Financial News that there were no plans to buy more Bitcoin:

“We have no plans at the moment to make more purchases. There are no plans at this time to reevaluate where we are from the treasury point of view. ”

Square reported a $ 20 million impairment loss on its Bitcoin investments in early May, but the fair value of its holdings far exceeds its carrying cost.

Jack Dorsey’s company invested $ 50 million in Bitcoin in October. It then announced a $ 170 million purchase in February.

Square’s Cash App made a killing with Bitcoin sales that generated more than $ 3.5 billion in revenue in the first quarter of this year.

Currently, Bitcoin constitutes 5% of Square’s balance sheet. The company will further evaluate the composition of its treasury in the future based on the evolution of cryptocurrency.

In sharp contrast to Square, Michael Saylor’s business intelligence company, MicroStrategy, released yet another $ 15 million Bitcoin purchase on Thursday.

An annoying problem

Ahuja says that Bitcoin’s carbon footprint must be addressed, calling for a wider adoption of green energy:

“There is a broader supply chain issue around how renewable energy and clean energy become a bigger part of the blockchain in general, and a bigger part of the overall mining and transaction network… It’s the general fixed footprint of the network that we need to solve. ”

The issue surfaced earlier this week after Tesla’s shocking turnaround in Bitcoin payments that sank the market.

Last month, Square and ARK Invest released a white paper that showed how Bitcoin can encourage renewable energy. Notably, Tesla CEO Elon Musk agreed with the report just a few weeks before turning back.

Source: U.Today

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