US Electronic Payment Company Square Purchases Additional 190 Billion Won Worth of Bitcoin

$170 Million Purchase... 5% of Company Assets
Square "Reflects Company's Commitment to Bitcoin Investment"

Jack Dorsey, CEO of Square [Photo by Reuters]

[Asia Economy Reporter Kim Suhwan] Square, an electronic payment company led by Jack Dorsey, the founder of social networking service (SNS) Twitter, has purchased $170 million (1.9 trillion KRW) worth of Bitcoin.

On the 23rd (local time), Square released its Q4 earnings report stating, "We purchased $170 million worth of Bitcoin, which accounts for 5% of the company's total assets." The report added, "This reflects the company's commitment to investing in Bitcoin," and "We will continue to increase our investments in virtual currencies."

Square further stated, "Virtual currencies enable individuals to participate in the global monetary system and secure their financial future," adding, "This aligns with our company's goals."

Square had previously purchased $50 million (55 billion KRW) worth of Bitcoin in October last year. This amount represented 1% of Square's total assets at the time, and with this additional Bitcoin purchase, the proportion has significantly increased.

Meanwhile, as Bitcoin gains attention as the currency of the future, more companies are investing in it. PayPal, Square's competitor and the largest electronic payment company in the U.S., also allowed Bitcoin transactions in October last year. PayPal explained this move by saying, "The transition to virtual currencies is an inevitable change," and "PayPal aims to participate in the role virtual currencies will play in the future of the global financial system."

Earlier, Tesla, an electric vehicle company led by Elon Musk, invested $1.5 billion (1.6 trillion KRW) in Bitcoin and announced plans to accept Bitcoin as a payment method for purchasing its cars. Business software company MicroStrategy has also expanded its Bitcoin purchases since last year and owns $3.4 billion (3.7 trillion KRW) worth of Bitcoin as of the 2nd.

However, there are critical voices regarding Bitcoin's excessive price volatility. Bitcoin surged from $30,000 at the beginning of the year to $58,000 last week but has since dropped to around $48,000, continuing extreme fluctuations. Wedbush Securities analyst Daniel Ives said, "Bitcoin's high price volatility poses risks to companies investing in Bitcoin," adding, "Tesla's stock price plunged as much as 13% today, largely influenced by Bitcoin."