- Just one month after its $50 million purchase of bitcoin, Square has pocketed $34 million in paper profits as bitcoin surges to near all time highs.
- In October, Square purchased 4,709 bitcoins at an average price of $10,618 as it built up its exposure to the cryptocurrency.
- Since then, bitcoin has surged nearly 70% to $17,850 as of Tuesday afternoon.
- Watch bitcoin trade live here.
In October, Square said it purchased 4,709 bitcoins in a single day for an aggregate purchase price of approximately $50 million. The move was in a bid to expand its exposure to the popular crypto currency, building ontop of its platform that already allows its users to buy, sell and transfer bitcoin.
Square bought the 4,709 bitcoins for an average price of $10,618.
Since the October purchase, bitcoin has surged nearly 70% to a high of $17,850 as of Tuesday afternoon, representing paper profits of $34 million for Square’s initial purchase.
Shares of Square jumped as much as 6% in Tuesday trades to $190.74.
The surge in bitcoin materialized as investors dealt with an uncertain presidential election, a surge in daily COVID-19 cases, and news of vaccine breakthroughs from both Pfizer and Moderna.
Despite the recent rally, bitcoin still has its skeptics as not all investors are convinced of the utility that bitcoin provides.
In a tweetstorm on Tuesday, billionaire investor Ray Dalio listed 3 reasons why he can’t get behind bitcoin as an everyday currency or store of wealth, though he did concede he “might be missing something.”
According to Square’s CFO Amrita Ahuja, Dalio is missing something. Bitcoin “has the potential to be a more ubiquitous currency in the future,” Ahuja said in October.