USA

Square sold $ 1.63 billion of bitcoins

Navigation

Elon Musk bets on Bitcoin with 1.5B investment

Square sold $ 1.63 billion of bitcoins

Square sold $ 1.63 billion of bitcoins
CONTENT

  • Square sells bitcoins bought in summer

  • Square earned $ 32 million from the sale of bitcoin

  • Institutional Investors Invest in Bitcoin

International consortium of news organizations developing transparency standards.

Square announced that it sold over $ 1.63 billion in bitcoins, with a total net profit of $ 32 million..

Square sold $ 1.63 billion of bitcoins

Square earned 15 times more than last year

Square sold $ 1.63 billion worth of bitcoins in the third quarter of 2020, according to a recently released earnings report. Recent quarterly sales accounted for almost 90% of all sales in prior quarters, which indicates the growth of the cryptocurrency business.

Taking into account the cost of acquiring bitcoins, Square generated $ 32 million in gross profit from coin sales, which is more than 15 times more than last year and represents more than 4% of the company’s total gross profit..

“Bitcoin revenue and gross profit have grown due to an increase in the number of digital assets and volume per customer,” the company said in a report..

Bitcoin sales by Square

Square sold $ 1.63 billion of bitcoins

Square last month announced a $ 50 million purchase of bitcoin. At the same time, the payment firm stated that “cryptocurrency is a tool for expanding economic opportunities and provides an opportunity to participate in the global currency system, which is in line with the company’s goals.” Investments accounted for approximately 1% of Square’s total assets as of Q2 2020.

“In October 2020, we invested $ 50 million in bitcoins because we believe that cryptocurrencies are a tool for expanding economic opportunities and are in line with the company’s goals. We look forward to holding this investment in the long term. Bitcoin accounting rules will require us to recognize any decline in the market price below cost as an impairment loss without upward revision when the market price rises before selling, ”the company said in a statement..

It is worth noting that since 2018 the company has sold over $ 3.4 billion worth of bitcoins, according to The Block expert Ryan Todd. Square reported total gross profit of $ 794 million for the third quarter. Cash App generated a total of $ 385 million in gross profit, according to report.

Large investors invest in bitcoin

Institutional investors continue to accumulate bitcoins in their portfolios. Since the beginning of 2013, the number of institutional investors who are investing in Bitcoin futures has been steadily increasing. A study by the OKEX crypto exchange and the Catallact company revealed a certain pattern – the number of institutional investments increases sharply immediately after the statements of large funds about investing in cryptocurrency.

Back in May 2020, renowned macro investor Paul Tudor Jones announced that his fund would invest in BTC futures to protect assets from inflation. Immediately after Jones’ speech, it was reported in the media that the Nasdaq-registered business analytics company MicroStrategy had acquired 21,454 BTC worth more than $ 250 million to protect its coffers from fiat inflation. This caused a surge in institutional investment in the market.

Since the analytical company cannot give an unambiguous answer about the origin of transactions, experts put forward two possible theories:

“It is possible that one or more cryptocurrency exchanges that hold extremely large amounts of BTC have been shuffling coins into different wallets for a variety of reasons, most likely security related. There is also the possibility that large institutional players and big money whales accumulated or distributed large amounts of BTC during this consolidation period in anticipation of the price of the leading cryptocurrency going up or down, ”the study said..

Square sold $ 1.63 billion of bitcoins

In general, experts predict that the number of investments in cryptocurrencies from whales and institutional investors will continue to increase..

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

Share Article

Similar articles

Similar articles