Square's $170 Million Bitcoin Bet Isn't a Big Deal
Square (NYSE: SQ) recently added $170 million in Bitcoin (CRYPTO: BTC) to its balance sheet, marking a big jump from its $50 million in Bitcoin purchases in the fourth quarter of 2020.
That investment wasn't surprising, since Square's CEO Jack Dorsey is a big backer of the world's top cryptocurrency -- but investors shouldn't read too much into this big Bitcoin bet, for three simple reasons.
Square ended 2020 with $3.16 billion in cash and cash equivalents. Its total Bitcoin holdings only accounted for about 5% of that total. Therefore, Square isn't aggressively converting all of its cash to Bitcoin -- it's merely keeping some on hand as a long-term bet on the cryptocurrency's future.
Source Fool.com
