Skip to main content

Square has already raked in $34 million just one month after making a huge bitcoin investment (SQ)

Jack DorseyDavid Becker/Getty Images

Summary List Placement
  • 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.

Square's $50 million investment in bitcoin last month is already paying dividends, as bitcoin surges to levels not seen since its 2017 ascent.

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. 

Read more: 30 years old with a piece of 300 units: Here's how Evan Holladay is filling a unique multifamily real-estate niche with an under-the-radar strategy

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.

Read more: RBC says buy these 25 healthcare-tech stocks to reap the benefits of the US digital health industry, which has been accelerated by 5 years because of COVID-19

Bitcoin chart.JPGMarkets Insider

NOW WATCH: Why thoroughbred horse semen is the world's most expensive liquid

See Also:

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.