Square, makes over 100% profit on Bitcoin (BTC) investment!
Following MicroStrategy, Bitcoin (BTC) – friendly fintech company Square also announced an investment in BTC. The big Silicon Valley firm spent about 1% of its assets on BTC ($50 million) from its balance sheet. This is the 2nd time a U.S.-based publicly traded company has put BTC on its balance sheet as an investment. situation.
While some thought the move was foolish, Square has now profited heavily from the investment. Square, MicroStrategy and a number of other companies and funds that have invested in BTC in the past few months have also made significant returns from this investment.
As a Bitcoin Twitter account that tracks market prices points out, Square’s BTC investment is now up more than 100 %:
“Square’s Bitcoin position now has a 2-fold valuation. On October 7, 2020, Square, Inc. he bought about 4,709 Bitcoins, with a total purchase price of us $ 50 million. Purchase price: $ 10,617. The current price in BTC is $ 22,580.”
Remember, Square is not the only firm to have made a successful investment in Bitcoin in recent months. Late yesterday, Scott Minerd of the Guggenheim said his firm had begun allocating capital to Bitcoin. It did not disclose which vehicle they made the investment with.
Similarly, Wall Street investor Paul Tudor Jones has been in a 100% profit position since his firm’s first acquisition of BTC before halving earlier this year. The returns from Bitcoin investments are expected to attract even more corporate firms in the coming months.
More Earnings On The Horizon
Analysts think this market will rise further in the long term. Scott Minerd, the global CIO of the aforementioned Guggenheim, told Bloomberg that he thought Bitcoin would reach $ 400,000 this market cycle, a reference largely to the scarce structure of the leading cryptocurrency. $ 400,000 means Bitcoin’s market value could almost exceed that of the precious metal gold.