In the midst of a turbulent cryptocurrency market, only big players are able to hold through red days, without whining and making a big fuss about a single-day price adjustment. You might be asking, why the hell would Square buy Bitcoins in the midst of a price crash? Well, the answer is simple: Big Companies know where to enter and exit the markets.
How much Bitcoins did SQUARE Buy?
Square is an American Financial Services company, that provides merchant services aggregation, and mobile payment. They are based in San Francisco, California. The company pretty much sells software and hardware payments products. In fact, they did expand throughout their years into small business services. Therefore, for this giant company that made 4.7 Billion in revenues back in 2019, getting into the cryptocurrency game is a no-brainer.
Back in October 2020, Square company bought 4,709 BTC at a price of around USD 11,000. Back then, this kind of news was the main driver for people to gain trust in cryptocurrencies. Today, many big tech companies just added to their balance sheets Bitcoins, like the recent Tesla buy of 1.5 Billion worth of BTC.
Today, Square just added 3,318 Bitcoins to their balance sheet, for a price of around USD 170 million. The company stated that their BTC holdings represent 5% of the company’s assets end of 2020.
Why does Big Tech buy Bitcoins?
It is very simple. When you have cash (specifically USD), which is losing value year-on-year, it is smart to diversify, and get into other alternatives that increase in value, hence hedging your cash devaluations.
Now, for the people who entered a FUD zone in the previous red days: Do you really think that TESLA or SQUARE, would buy BTC 1 week, and sell them the week after because “the market is crashing”?
Additionally, those companies have a MINIMUM HOLD OF 1 YEAR in their balance sheets, and would never enter a bad investment without proper risk management. So good news for everyone who benefited from the hefty discount on cryptos recently.
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Rudy Fares