02.03.2024

Twitter CEO Square buys $ 170 million worth of bitcoin

Payment company Square has revealed information about new investments in bitcoin. According to a press release from Square, the company acquired another 3,318 BTC for a total of $ 170 million, bringing the average purchase price to $ 51,235 per BTC.

The company notes that taking into account its previous investment, the amount of reserves invested in cryptocurrency has reached about 5%. On October 7, 2020, Square acquired 4,709 BTC for $ 50 million.The value of this investment has since grown to $ 226 million.

“In line with the company’s goals, Square sees cryptocurrencies as an economic empowerment tool that helps individuals participate in the international monetary system and shape their future. This investment was part of Square’s ongoing commitment to Bitcoin. The company plans to value its total investment in bitcoin relative to other investments on an ongoing basis, ”the firm says.

Square also released its fourth quarter and full year 2020 financials today. During this time, its customers through the Cash App have purchased bitcoins for $ 1.76 billion and $ 4.57 billion, respectively.

“In 2020, we saw a significant increase in Bitcoin revenue over last year. Bitcoin sales revenue grew 9 times to $ 4.57 billion, and gross profit was only $ 97 million, or about 2% of revenue, adds Square. «The numbers rose on the back of increased Bitcoin-related activity and customer demand, as well as a significant rise in the price of Bitcoin.»

The company also cites statistics according to which over three million customers bought or sold bitcoin through the Cash App in 2020, and in January 2021, over a million customers purchased cryptocurrency for the first time. In addition, in the fourth quarter, the volume of transactions in bitcoin increased by more than two and a half times compared to the same period last year.

“This was primarily due to the activity aimed at buying bitcoin, while existing customers continued to buy it, and new ones did it even in larger volumes ,” notes Square.

New York State Litigation Ends Against Tether and Bitfinex

Tether (the issuer of the largest stablecoin USDT) and Bitfinex will no longer be able to provide trading services to New Yorkers, in addition, both organizations will have to pay $ 18.5 million in fines. All in all, their two-year lawsuit with the New York attorney general’s office came to an end.

The litigation began in April 2019, when the Attorney General’s office in New York announced that Bitfinex had lost $ 850 million and secretly used Tether funds to cover losses to the Crypto Capital payment system.

In fact, the money was confiscated by government agencies in the US, Portugal and Poland, and since then Bitfinex has been working to get it back.

The prosecutor’s office also said that both cryptocurrency-related companies made false statements about backing Tether (USDT) with dollars:

“By breaking the law, Bitfinex and Tether were hiding huge financial losses in order to falsify their financial results. Tether’s claims that its virtual currency was always fully backed by US dollars turned out to be false.

These companies concealed the true risk that investors face and were run by unlicensed and unregulated individuals and entities operating in the darkest corners of the financial system , ”said New York Attorney General Laetitia James.

The conclusion said that her office had taken «measures to stop the illegal activities of Bitfinex and Tether in New York», since both organizations will no longer be able to trade in the state. In addition, Tether and Bitfinex will have to pay the state $ 18.5 million in fines.

Tether has posted its own response, which says that both companies are «happy with the settlement of the litigation.» In addition, it is reported that Tether and Bitfinex have been fully cooperating with the authorities over the past couple of years, in fact not acknowledging «any violations.»

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