Square, the largest payments company with a market capitalization of more than $80 billion, has announced it is buying $ 50 million worth of Bitcoin. The news had a big impact on the cryptocurrency markets, and this was also seen in the price of Bitcoin. The leading cryptocurrency jumped from $10,600 to close to $11,000 just hours after Square announced its purchase of Bitcoin.
Square then released a document providing information on the company’s investment thesis and how it handled the acquisition process. “We believe now is the right time to expand our US dollar-weighted balance sheet and make a meaningful investment in Bitcoin, ” Square said in a statement. We see bitcoin as an instrument of global economic power. Bitcoin is a way for individuals from all over the world to join the global monetary system and secure their financial future. This investment is an important step in terms of our mission. , “he said.
Twitter’s CEO recently explained why Bitcoin is “the best internet money.”
Square reportedly bought about 4,709 BTC and made it through a Bitcoin liquidity provider (OTC), which is used as part of the Cash App‘s Bitcoin trading product.
“We negotiated a public bitcoin index pricing spreads to reduce the risks and cost and on ‘lowest’ expected price volatility and high market liquidity and a predetermined 24-hour period using the weighted average price during the process we did. The criteria we examined when selecting our liquidity providers included pricing, annual volume, and integrations with our existing trading and payment rails., ” he continued.
It could be Cumberland, itBit, Genesis, or Circle, although Square did not disclose which company the transaction was with.
MicroStrategy made 167 thousand transactions to 38 thousand 250 BTC
August and September, on the other hand, a total of 38 thousand 250 BTC transactions signed before Square MicroStrategy, 167 thousand transactions for these purchases. In the first purchase of 21,454 BTC, 78,388 out-of-chain transactions were made, the BTC received was secured using cold storage with 18 in-chain transactions.
In the second purchase, 0.19 BTC was purchased every 3 seconds for 74 hours, for which a total of 88,617 transactions were made.
