Buy $170 million worth of Bitcoin to Tesla Ear Square

Jack Doshi Square Chief Executive Officer.  CNBC provided

Jack Doshi Square Chief Executive Officer. CNBC provided

Square, an American online payment company, announced at the end of last year that it had purchased $170 million worth of Bitcoin. Square is a company with Twitter founder Jack Doshi as CEO.

CNBC reported that Square made such a disclosure in its fourth quarter earnings report filed with the Securities and Exchange Commission (SEC) on the 23rd (local time).

Square explained that it started investing in bitcoin using cash from October last year, and that it bought 4709 bitcoins for the first investment, followed by an additional 3318. As of the end of last year, the proportion of cryptocurrencies among the company’s assets is about 5%.

Bitcoin price has recently plummeted, but compared to the purchase price, Square is estimated to be making a significant valuation margin.

“We are continuing to invest in bitcoin,” the city CEO said, “we will regularly evaluate the value of bitcoin.”

Earlier, Tesla’s CEO, Elon Musk, also announced that it had purchased $1.5 billion worth of bitcoin through the company. The purchase point is last month.

However, Daniel Ives, an analyst at the securities firm Wedbush, emphasized in an interview with CNBC that “because of the high volatility of bitcoin, bitcoin investment can act as a risk factor for the company.” “Tesla stock price is also directly linked to bitcoin.” .

The price of bitcoin has been tumbled.  Coindesk capture

The price of bitcoin has been tumbled. Coindesk capture

Meanwhile, the recent plunge in bitcoin prices is due to’debt investment’ by people who want to join this year’s cryptocurrency rally, Goldman Sachs said.

Goldman Sachs said, “Recently, as the price of bitcoin has risen, more people have created enormous loans and want to invest. Because of this, loan interest has soared to 144% a year.” He said, “As you and I started selling bitcoin, a selloff was triggered.”

As of 7:15 p.m. on that day (9:15 a.m. on the 24th, Korea time), the price of bitcoin was traded for $47,260 each on Coinbase, the largest cryptocurrency exchange in the United States. Compared to 24 hours ago, it is a drop of 11.62%.

New York = Correspondent Jae-gil Cho [email protected]

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