Bitcoin pioneer and Blockstream CEO Adam Back says Square’s massive BTC purchase is a sign that institutions are scooping up the leading crypto asset amid the marketwide correction.
Back, who created a proof-of-work system before Bitcoin was invented, explains to his 247,500 followers the significance of Square’s latest BTC investment.
- “Worth noting… from the $51,000 price implied, Square bought in the last 7 days, either before $58,000 or after, or a mix of peak and dip buying average. Keep that in mind before selling BTC under $50,000: both institutional and retail ETF buying up for cold storage.”
On Tuesday, the San Francisco-based payments giants announced that it had acquired 3,318 BTC at an aggregate price of $170 million. Combined with Square’s initial $50 million BTC investment in October 2020, the financial services firm’s BTC holdings now represent approximately 5% of its total cash assets.
Square’s latest Bitcoin purchase comes as the company reveals in its latest SEC filing that the revenue it made from selling Bitcoin via Cash App skyrocketed over 785% from $516 million in 2019 to $4.57 billion in 2020.
Says Square CEO Jack Dorsey,
- “We’re going to focus on increasing transaction limits across the system for Cash App and going to double down on our commitment to Bitcoin and look for new ways to connect our products within the Cash App.”
The flagship cryptocurrency continues to trade below $50,000 as it goes through a significant correction that drove its value to a seven-day low of $45,290. At time of writing, Bitcoin is trading at $48,950, according to CoinMarketCap.