Square reports accelerated interest in Bitcoin
Fintech firm surges 22 per cent in Wednesday trading
The chief financial officer of Square (SQ), has noted an increased interest in Bitcoin (BTC) from users of its popular Cash App service as a result of the economic crisis triggered by Covid-19.
Amrita Ahuja told investors: “Adoption and engagement of fractional equity investing in Bitcoin has accelerated in recent weeks given recent market interest and volatility.”
Such news will be welcomed by many in the crypto community as evidence that, despite its more than 40 per cent plunge earlier this month, Bitcoin has not lost its appeal as an alternative investment and hedge against the fiat currency system.
After Bitcoin’s recent fall, many feared for future adoption rates as much of the initial interest in the crypto was based on its separation from the whims of central bankers and potential as a digital hedge.
Ahuja’s recent revelations with help to allay such fears, along with Bitcoin’s partial recovery in recent weeks.
With a market capitalisation of $24.4bn (£20.6bn, €22.4bn), Square is one of the largest and best-resourced American companies which believes in Bitcoin. Last year the company registered more than $516m worth of Bitcoin sales.
Its chief executive officer Jack Dorsey, who also founded and runs Twitter, is a staunch Bitcoin bull and regularly sings the digital currency’s praises. In this week’s investor call Dorsey observed that "we're seeing strong engagement and volume for Bitcoin."
By late-afternoon on Wednesday, the price of Bitcoin has stayed stable at $6,680.10, while Square has surged on the Nasdaq thanks to strong quarterly results and the approval of a $2 trillion stimulus package by the U.S. congress. The tech firm stands up 22.86 per cent at $56.81.
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