Cryptocurrencies

Jack Dorsey Announces Square Invested By Buying No Less Than $ 50 Million In Bitcoin (BTC) – Cryptocurrencies

Bitcoin (BTC) broke the $ 11,500 mark again, days after Square announced a massive acquisition of BTC. The Bulls are thrilled to welcome a new whale, bringing the number of companies betting on BTC to 8.

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Activist Dorsey bets $ 50 million on Bitcoin

Love of Twitter CEO, Jack Dorsey, for Bitcoin and cryptocurrencies in general, is no secret.

Dorsey is also the co-founder of the payment company Square. The latter developed the application CashApp which allows its users to invest in Bitcoin.

On October 8, 2020, a press release states that Square bought 4,709 BTC, for an amount of approximately $ 50 million.

This press release indicates that this decision is an ideological choice: Square sees cryptocurrency as an instrument of empowerment that provides a means for all to collaborate in a global economic system, in accordance with corporate principles.

A few weeks ago, Dorsey openly rebuked the CEO of Coinbase, Brian armstrong, sure Twitter for its apolitical position: according to Dorsey, cryptocurrencies are the result of direct activism against an unverifiable and proprietary financial system that negatively affects a large part of society.

Square: a micro version of MicroStrategy

This announcement comes a few months after that of MicroStrategy, which had decided to convert a portion of its cash into Bitcoins : MicroStrategy currently holds 38 250 BTC.

Its CEO, Michael saylor, is also well known for his maximalist positions on Bitcoin.

The big difference between the 2 companies lies in their market capitalization: that of MicroStrategy is valued at $ 1.5 billion, an amount well below the capitalization of Square, estimated at 81 billion dollars.

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This investment represented approximately 1% of the assets of Square at the end of the second quarter of 2020.

Can Bitcoin really serve as a hedge against dollar inflation for businesses? BTC has left the underground world of the dark web, or more precisely the deep web, to enter the balance sheets of US companies. The US regulators would no longer fail to accuse them of money laundering or tax evasion for having dared to convert part of their cash into BTC. Massive entry of new whales will propel BTC to new ATHs by the end of 2020, new ATHs will encourage the massive entry of new whales. The egg or the chicken? Always the same story.

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