Square Adds $170 Million Bitcoin To Its Balance Sheet
Crypto Briefing | Feb 24, 2021 04:49AM ET
Square Inc (NYSE:SQ). increased Bitcoin allocation from 1% of its cash balance to 5%. Square published its annual earnings report yesterday and revealed a $170 million Bitcoin purchase at an average price of $51,235. Fee earnings from the purchase and sale of Bitcoin on Cash App continue to be the primary income source for Square Inc. Cash App’s monthly active users reached 36 million, a 50% increase year-to-year.
Bitcoin accounted for 48% of Square’s total revenue of $9.5 billion in 2020. The revenue from Bitcoin increased nine times from the previous year; Square made 2% of the revenue in profit of $100 million.
The year’s net profit was $215 million, with an earnings per share (EPS) value of $0.84. Square Inc. stock has increased by 315% since the beginning of 2020, from $62.5 to $256.5.
The finance app saw robust growth in crypto trading since the last quarter of 2020, adding $1.8 billion to the company’s revenue in Q4 2020. The report also cited that:
“In January 2021, more than one million customers purchased bitcoin for the first time.”
In the last quarter of 2020, the company made a net profit of $294 million, of which investments accounted for $274 million or 93%.
Square’s earlier Bitcoin investment from September of $50 million is worth over $240 million. It added $170 million BTC during the dip in the last two days.
The financial services firm now owns 8,807 BTC, bought at an average price of $25,000.
The Bitcoin investment revelation at the end of yesterday’s tumultuous price action instilled bullish strength back in the asset. The premier cryptocurrency regained $50,000 level, rising from 3.5% on an hourly scale after the announcement.
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