TL;DR Breakdown
- Square not ready to buy more BTC
- Why firm may not be ready for more BTC investment
The chief financial officer (CFO) of Square, Amrita Ahuja, has said that the firm has no plans to buy more Bitcoin just yet.
She said this in an intrview today with Financial news in response to the recent dip experienced by BTC after Tesla and its decision to halt bitcoin payments for its products.
The firm between 2020 and 2021, bought over $200 million worth of Bitcoin but states that they are not ready to add more to the haul.
In October 2020, Square announced buying $50 million worth of Bitcoin (BTC), which equated to 4,709 BTC, given the asset’s prices back then. In February 2021, the company announced picking up $170 million worth of additional Bitcoin, which paid for roughly 3,318 coins.
“We don’t have any plans at this point to make further purchases.” She added: “There’s no plans at this point to re-evaluate where we are from a treasury standpoint.”
Square’s tough times with BTC
The firm BTC position, (8,027 BTC) temporarily got hit in light of the company’s most recent purchase ($170m with a cost basis of over $51,200). Square is still up about $200m with BTC overall (their initial purchase was at a lower price). Still, this recent dip has likely provoked upper management into slowing the pace of their diversification into riskier assets.
The dip cannot be unconnected from the air surrounding Bitcoin owing to Elon Musk’s Tesla’s development.
However, the firm is more inclined to BTC than just he investment. The company’s Cash App facilitates free Bitcoin transactions, unveiled in March, as per Square’s May 6 earnings document. The firm’s Cash App also hosts Bitcoin trading.
“Lots of other opportunities for [Square] to learn with bitcoin” exist, Ahuja told Financial News following her comments on the company’s stance on its Bitcoin holdings.
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