BREAKING: Square & Twitter's Boss, Jack Dorsey buys $50M worth of Bitcoin.

[nelson4lov]

One of the news topping today's headline is the one about Square (A payment firm run by Jack Jorsey) added over $50M (~ approx. 4709 BTC) to its portfolio.

Announcing the news on Thursday, Square said “cryptocurrency is an instrument of economic empowerment and provides a way to participate in a global monetary system, which aligns with the company’s purpose.”

The investment represents approximately 1% of Square’s total assets as of Q2 2020.

"We believe that bitcoin has the potential to be a more ubiquitous currency in the future," said Square’s CFO Amrita Ahuja. "As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey."

Square becomes the second US-based cooperate organization after Microstrategy to invest in Bitcoin.


Jack has always been a huge fan of Bitcoin and one of the first few public figures to openly embrace Bitcoin and its technology. So I'm not really surprised with this move. This could be good and bad news for the crypto community.

• Bad news: If more companies keep buying huge stacks of BTC, They might own enough to become manipulative and do things their own way.
  

 

• Goodnews : Bitcoin is getting the much needed attention and soon enough, more companies would buy in and the value would increase ~ possibly to everyone's dream price of $50,000 or more. Also, If these companies integrate Bitcoin to their products. For example, Square processes billions of dollars worth of transactions  yearly.

What do you think about this? Feel free to share.

Update: Bitcoin is up 2%+ since the news was released and the market is starting to look greenish again  

[1715404352]

1715404352

[1715404352]

1715404352

[1715404352]

1715404352

[1715404352]

1715404352

[1715404352]

1715404352

[joniboini]

Announcing the news on Thursday, Square said “cryptocurrency is an instrument of economic empowerment and provides a way to participate in a global monetary system, which aligns with the company’s purpose.”
The investment represents approximately 1% of Square’s total assets as of Q2 2020.

Does this mean they already purchased it back in Q2 but announced just now?

Update: Bitcoin is up 2%+ since the news was released and the market is starting to look greenish again  

There's still a possibility of another tweet from Trump that caused it to drop again though. Nevertheless, it is nice to see that it tries to break the short-term downtrend and push up to $11k again.

[crwth]

I don't think the bad news is going to be that impactful knowing that in order to be manipulative, you should have incredibly enormous stacks of Bitcoin, and I doubt that companies that are investing in Bitcoin would collude together for their benefit. It defeats their initial goal in which thinking Bitcoin is the currency of the future.

I do believe that when companies start doing something like this, it's going to get more people in and learn more about it. It's going to be beneficial for everyone, and as long as they don't get scammed, Bitcoin is going to the moon.

With Square's Cash App, it's going to be more impactful for them. That's the excellent news for use crypto enthusiasts.

[mk4]

Square's $50M allocation is not that huge of an allocation compared to MicroStrategy's $425M; also taking into consideration that Square's marketcap is at around 80 billion while MicroStrategy is only at 1.5 billion.

I really don't blame Jack Dorsey though, his shareholders would probably give him a lot of flack if he invested a huge sum of money in a risky unproductive asset. If anything, I see this only as a PR move by Dorsey as some bitcoiners on Twitter are pressuring him to have more skin in the game lol.

[blockman]

AFAIK, this has been their activity. They're known for accumulating before the pandemic. I've looked for some old articles and found one from 2018 and I think there's older than this but not later than the bull run of 2017.
(https://www.reddit.com/r/Bitcoin/comments/aw5art/square_bought_over_10000_btc_in_q4_2018_only/)
(https://cointelegraph.com/news/report-squares-cashapp-and-grayscale-consumed-over-50-of-bitcoin-mined-q1-202)

[Becky666]

<snip>

• Bad news: If more companies keep buying huge stacks of BTC, They might own enough to become manipulative and do things their own way.
  

The truth is, manipulation will be inevitable when the time come. Imagine when those big companies cut huge portion of Bitcoin and hold, this will enable them manipulate the market at self-will. Although, this will be a tough one because many companies will get involve and be made competitive.  

 

• Goodnews : Bitcoin is getting the much needed attention and soon enough, more companies would buy in and the value would increase ~ possibly to everyone's dream price of $50,000 or more. Also, If these companies integrate Bitcoin to their products.

~~~

This will definitely happen when mass adoption set in (increase in Bitcoin price). The current positive movement in cryptocurrencies will give a surprise to the world and companies will embrace the power of cryptocurrency in which Bitcoin will be the lead.

[TalkStar]

• Bad news: If more companies keep buying huge stacks of BTC, They might own enough to become manipulative and do things their own way.
  

Well established companies have their own investment strategy and you can't say exactly that everyone of them will follow the way of manipulation. I am not seeing any risk factor here where its a good sign that famous business platforms are joining the bitcoin community with positive thinking. You have to keep in mind that only a small amount of people have knowledge about bitcoin and its use. Even worldwide governments are taking time to study about bitcoin before making it legal for their citizens. In a situation like this when companies like square join the bitcoin family by purchasing huge amount then obviously its gonna put positive effect on other companies and if I am not wrong then lot more companies are planning to start their journey with bitcoin.

Investor like them never run after hyip or waste their time to manipulate market. You may have seen that its only 1% of their total asset and hopefully they will invest more in the upcoming days. You have already mentioned on your post that market have started to be green and i don't think anyone will take it as a bad news. So, definitely you can expect bitcoin positive price and community development in the near future.

[20kevin20]

• Bad news: If more companies keep buying huge stacks of BTC, They might own enough to become manipulative and do things their own way.
  

Unfortunately, this is inevitable. Humans are greedy. There will always be at least one who'll want to have more than the others do. As Bitcoin gets more and more adopted, more Bitcoin than ever before will be in the hands of the wealthy. I guess there is no way we could evade wealth inequality even with BTC - but at least it's decentralized.

• Goodnews : Bitcoin is getting the much needed attention and soon enough, more companies would buy in and the value would increase ~ possibly to everyone's dream price of $50,000 or more. Also, If these companies integrate Bitcoin to their products. For example, Square processes billions of dollars worth of transactions  yearly.

Well, the bolded part is quite contradictory to your bad news. The value of Bitcoin hitting $50k or more is not far-fetched. We're quickly approaching the moment where the world will have its first trillionaire ever.

Update: Bitcoin is up 2%+ since the news was released and the market is starting to look greenish again  

While the increase of Bitcoin's price makes me happy, I wouldn't be that excited about it. We're known to have unnecessarily quick pumps after breaking news that most of the times end with quick drops as the hype ends.

[dothebeats]

Dorsey has always been a bitcoin bull so there's no surprise that Square would acquire some bitcoins along the way. Besides, $50m is a small sum to ask for the marketcap of the payments company. This might just be a very small gamble that they are taking and to possibly influence positive bitcoin price movement too, considering that this somewhat changes the traders' perspective on the current events that's happening within the cryptosphere. Surely this acquisition won't hurt the bank, and might even pay more in the coming years so this is just a low-risk, high-reward gamble by the Twitter boss.

[buwaytress]

Drop in the sea of Bitcoin buys, but yeah, okay I get it, still a big endorsement of one prominent guy for Bitcoin but you know, this is just a "Bitcoin guy buys more Bitcoin" story;)

And don't worry about companies buying more Bitcoin, there will always be some left. Besides, who's to say they're buying actual Bitcoin;)

[BayAreaCoins]

• Bad news: If more companies keep buying huge stacks of BTC, They might own enough to become manipulative and do things their own way.
  

Owning Bitcoin does jack fuck for control of Bitcoin.

If Bitcoin was POS... then yes, but with POW.... Owning Bitcoin is NOT like having voting shares in a company.  I personally much prefer the POS model of ownership and "voting rights".

If you buy 1 million Bitcoins, you don't get 1 million votes of 21 million.  You get a bunch of imaginary internet stuff you can't touch that hopefully at least one other person in the world values and thinks they could sell to another person!

[so98nn]

Square's $50M allocation is not that huge of an allocation compared to MicroStrategy's $425M; also taking into consideration that Square's marketcap is at around 80 billion while MicroStrategy is only at 1.5 billion.

I really don't blame Jack Dorsey though, his shareholders would probably give him a lot of flack if he invested a huge sum of money in a risky unproductive asset. If anything, I see this only as a PR move by Dorsey as some bitcoiners on Twitter are pressuring him to have more skin in the game lol.

Good thought here. I guess it would be the case with us as well if we were the shareholders. I mean I will freak out the second minute if CEO that company announces something like this.

But again if they had pre-updates on this agenda then it would be actually positive news for me since I would already know that it will hike the bitcoin prices somewhat. This way I can make some profit due to the actions of this step.

Obviously this is temporary and single shot. It may or may not be good in long terms.

[swap2cashcom]

Nothing to sneeze at for sure. I'd love to have 50 million worth of BTC in my portfolio.  It is great to see people having so much fate in Bitcoin though!

[mk4]

The truth is, manipulation will be inevitable when the time come. Imagine when those big companies cut huge portion of Bitcoin and hold, this will enable them manipulate the market at self-will. Although, this will be a tough one because many companies will get involve and be made competitive.  

Welcome to free markets. Big players will always have a significant market advantage compared to the small players like us. Only thing we can do is to hope for more adoption to hopefully potentially decrease the market influence of these huge players. Once bitcoin's marketcap becomes big enough and the allocation becomes really spread out, they won't have that much influence anymore.

[hatshepsut93]

Drop in the sea of Bitcoin buys, but yeah, okay I get it, still a big endorsement of one prominent guy for Bitcoin but you know, this is just a "Bitcoin guy buys more Bitcoin" story;)

Yep, we are still at the point where any public endorsement by prominent figures is important and helpful. Maybe in 10 years no one will care if some company buys $50M worth of Bitcoin, but today it's clearly enough to move the market.

I do believe that when companies start doing something like this, it's going to get more people in and learn more about it. It's going to be beneficial for everyone, and as long as they don't get scammed, Bitcoin is going to the moon.

I don't think that consumers are tracking the investment actions of companies and make some decisions based on that, so it won't cause mass adoption, but it would influence adoption among investors.

[rdbase]

Was wondering why when I checked today bitcoin was @ $10490 the same as yesterday and then all the sudden popped to $10920 within the hour of checking.
Times like this does show the price of bitcoin is heavily sided with what big money has to say.

[BrewMaster]

Bad news: If more companies keep buying huge stacks of BTC, They might own enough to become manipulative and do things their own way.

luckily bitcoin has a strong algorithm called proof of work which is unlike the shitty PoS meaning when you own a lot of bitcoin you don't gain any kind of edge whatsoever.
the only thing they can do by owning a lot of bitcoin is to dump it and cause a temporary price crash which doesn't make sense because why did they buy it in first place to dump later?

the only real bad news is that as more and more bitcoin is being bought (by anyone) there will be less of this limited currency and at a much higher price for the rest of us to buy.

[24Kt]

AFAIK, this has been their activity. They're known for accumulating before the pandemic. I've looked for some old articles and found one from 2018 and I think there's older than this but not later than the bull run of 2017.
(https://www.reddit.com/r/Bitcoin/comments/aw5art/square_bought_over_10000_btc_in_q4_2018_only/)
(https://cointelegraph.com/news/report-squares-cashapp-and-grayscale-consumed-over-50-of-bitcoin-mined-q1-202)

This means they have huge stash of bitcoin by now. It will give confidence also to other people as known businessman is openly stating the purchase of bitcoin. People just need to educate themselves to appreciate the benefits brought by bitcoin or crypto. At least we are reading another positive news not the news relating to hack or scam.

[ChrisPop]

• Bad news: If more companies keep buying huge stacks of BTC, They might own enough to become manipulative and do things their own way.
  

It is a free market. Why haven't they done the same with Gold or other scarce assets? It is because they can't and it wouldn't be feasible. A high percentage of Bitcoin supply is held in cold wallets and not kept on exchanges as liquidity. If entity X decides to purchase enough BTC to manipulate the market, the market price would sky rocket before getting 'satisfied'.

[CarnagexD]

I doubt they only do this now, of course these tech related companies knows what is in the air, strategies are being studied to deal with new things like bitcoin. I do really believe that people like Elon Musk, Jack Dorsey and other wealthy people invested pretty decent amount of money in bitcoin, even Craig Wright lol what's frightening about this is that they might have huge impacts in the market once they accumulate more than 10% of total bitcoin.