Square will add $ 170 million worth of Bitcoin

Ahead of Tuesday's fourth quarter earnings conference call, payments firm Square announced that it had purchased an additional 3,318 BTC as asset storage. Square's cash and securities totaled $ 4.4 billion, so the $ 220 million spent on Bitcoin was only 5% of its total assets at the end of the fourth quarter.

Big Payment Square said on Tuesday it needed to add an additional $ 170 million in Bitcoin (BTC) to its October purchase.

Before this report is released, we need to look at the value of BTC.

According to an article published by the payment process, the company added 3,318 BTC to its equity with a value of $ 170 million. For the calculation, the purchase price of each Bitcoin is US $ 51,235.70.

Unfortunately for Square, Bitcoin recently fell to a low of $ 44,964.49 after hitting a new high of $ 58,000 during the week before rebounding to around $ 48,408.31 at the time of the press release.

At 4 p.m. New York time, Bitcoin was already below $ 48,000 when Square announced it.

With over $ 10 million in losses from recent investments in BTC, the company has added BTC, a cryptocurrency exchange, to their vaults as requested by JPMorgan. Chase analysts, that is, many companies are Footprints of Square and others (Tesla, MicroStrategy).

Ahead of its quarterly call, the company announced that it had added $ 50 million in BTC based on the 4,709 BTC purchased in October 2020.Currently, the investment is worth $ 224 million, giving the company the total value of BTC on Square's balance sheet (0.83%) at $ 394 million.

Square's cash and securities totaled $ 4.4 billion, so the $ 220 million spent on Bitcoin was only 5% of its total assets at the end of the fourth quarter.