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Square says 1 million new users bought BTC in January

Bitcoin

Cash App was launched by Square, and it is a peer-to-peer platform that also permits its users to buy and sell cryptocurrency. 

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Amrita Ahuja, the CFO of Square, said in an interview on CNBC that Square’s Cash App saw a rising number of users buy bitcoin for the first time during January. 

“We had 3 million people transact in bitcoin through Cash App in 2020 and 1 million who were new to bitcoin in January [2021],” Ahuja said on “Squawk Alley”.

Square entered the cryptocurrency market in 2017 when bitcoin had a major price raise of approximately $20,000, but the platform users have been allowed to make bitcoin transactions since January 2018. 

Square is one of the companies that included Bitcoin in its balance sheet, buying $50 million worth of the currency in October 2020. The firm also announced another purchase on Tuesday of $170 million worth of bitcoin. Both these purchases equal about 5% of the company’s cash assets. 

“We think about the long-term arc,” Ahuja said when she was asked about the volatility of bitcoin. “Overall, the investment we made so far is 5% of our cash, and the business we have related to bitcoin through Cash App is about 5% of our gross profit. We’re going to evaluate this investment on an ongoing basis. We’ll be dynamic. We’ll respond to the market environment, but ultimately that long-term vision is what we’re investing into,” she added. 

Square is taking careful steps towards digital currency but is a firm believer that the financial world is changing, and they need to approach this transformation. 

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