Square is a company that is co-founded by Jack Dorsey, who is co-founder of Twitter. Today, it has announced on its balance sheet that it has invested 50 million dollars in Bitcoin that has fetched it 4709 bitcoins. The supply of Bitcoin is limited to 21M BTC. That means if every company in the world were to do that only 4,459 companies would be able to buy BTC before the supply ran out.
It must be noted that the price will potentially be much higher per btc so they won’t be able to hold as many whole bitcoins as Square hold now, fractions of Bitcoins will be worth a lot more.
We feel that soon, we will be big corporations putting their profits into Bitcoin. It appears that Jack Dorsey was waiting for someone like Michael Saylor, CEO and Chairman of MicroStrategy to lead the way. Now that there is precedence he is more easily able to get it past his shareholders.
This is huge news. We predict Amazon will begin taking bitcoin and be the de facto legitimization of it on mass scale.
That said, keep in mind that’s about 0.8% of the cash on Squares’ balance sheet, and Jack is a big time bitcoin enthusiast. On the bright side, Bitcoin transactions accounted for 72% of Cash App’s revenue in Q2 2020. Here are Cash App Bitcoin Revenue (in millions):