Jack Dorsey's payment company Square invests $50 million in Bitcoin, accounting for 1% of the company's assets

Twitter CEO Jack Dorsey's electronic payment company Square announced today that it has purchased approximately 4,709 bitcoins, worth about $50 million. The company stated that it believes cryptocurrency is an empowering tool for economic participation, providing a way to participate in the global monetary system. In the announcement, it was stated that this investment represents 1% of Square's total assets.

Square Bitcoin Investment Whitepaper

Square's CFO stated that they believe Bitcoin will become a more common currency in the future. They also see this investment as a step in the journey for a company developing products with the future in mind.

Interestingly, Jack also provides a step-by-step guide on how Square buys Bitcoin over-the-counter (OTC), what custodial services are available, and how insurance and accounting are handled.

Square and the Origins of Cryptocurrency

In 2018, Square's product Cash App already allowed buying and selling of Bitcoin, targeting a younger investor demographic. During this year's pandemic, the app supported receiving relief funds. Jack Dorsey's close relationship with cryptocurrency and Bitcoin has remained unchanged, often mentioning cryptocurrency in his tweets. This year, Square even established the non-profit organization COPA to create an open-source code environment for the crypto community, providing additional protection and avoiding patent trolls.

Square's stock price has surged over five times from this year's low of $38 to $182.87.