Square told us how they decided to invest in bitcoin, how they made the purchase of approximately 4097 BTC and how they named security methods for storing assets.

Square felt it was important to disclose this information as other firms were also considering similar opportunities.

In the document, the company that invested $50 million in the first crypt currency stated:

„Given the rapid evolution of the crypt currency and the unprecedented uncertainty Bitcoin News Trader of macroeconomic and currency regimes, we believe that now is a good time to expand our balance sheet, mainly expressed in USD, and make a meaningful investment in Bitcoin“.

According to the press release, investments in BTC amounted to approximately 1% of Square’s total assets at the end of the second quarter of 2020.

In order to maintain confidentiality and reduce the cost of acquisition, Square has purchased bitcoins in the OTC market through a liquidity provider used to trade crypt currency in the Cash App. The firm has agreed with an OTC broker on the spread over the public bitcoin index. The parties used the weighted average price for the transaction within an agreed 24-hour period.

The counterparty was not named in Square, but a list of OTC platforms that they had previously worked with: Cumberland, itBit, Genesis and Circle.

For „cold“ storage of bitcoins, the company uses its own SubZero solution with hardware security module support, which was introduced in 2018.

Recall that in the second quarter of 2020 Square sold bitcoins through Cash App for $875 million.

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