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[Blockchain Today Reporter Park Yohan] In October last year, Square’s Bitcoin value, which decided to invest in bitcoin, has jumped five times.
Square, a global settlement company led by Jack Dorsey, purchased 4,709 bitcoins in October 2020 by investing $50 million of the company’s cash reserves. It has since been announced that the current bitcoin value has exceeded 250 million dollars due to the rising bitcoin price.
Square is considered one of the earliest companies that invested in Bitcoin with MicroStrategy. Bitcoin investments such as Square are also evaluated as having an impact on Tesla’s $1.5 billion Bitcoin investment.
But analysts don’t seem to be very excited about Square’s announcement of cryptocurrency performance. Meanwhile, at the time of announcement, Square’s bitcoin value accounted for about 1 percent of corporate assets.
Seaport Global analyst Chris Brendler said, “We’re likely to be more focused on buying bitcoins, while the value of bitcoin assets will rise further in the fourth quarter.
Analysts estimate that Square will earn $1.5 billion in Bitcoin. However, there are analysts who are not interested in the bitcoin market, saying that this evaluation could be wrong. He predicted that Square’s bitcoin transaction revenue would rise by $600 million to $2.2 billion in the third quarter.
In the third quarter of 2020, Square announced it had earned $1.63 billion in the Bitcoin sector. Square’s third quarter total revenue was $32 million.