Jack Dorsey's Square does not currently buy Bitcoin after a loss of USD 20 million

Von Sophie Müller

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  • Square, the cash app operator, does not buy a new Bitcoin after he has suffered a loss of $ 20 million in the first quarter, the CFO announced.
  • she also referred to the need for innovations to contain the energy consumption of Bitcoin, just a few days after Elon Musk, CEO von Tesla, had expressed similar concerns.

Square was one of the largest companies that promoted Bitcoin's introduction. According to the finance board, the company currently does not buy a new Bitcoin. This happened after the payment processor had a loss of $ 20 million from its Bitcoin stocks in the first quarter.

Square, which operates the popular cash app payment app, invested $ 50 million in Bitcoin in October last year. Four months later, in February of this year, the company invested another $ 170 million in Bitcoin. While some companies like Tesla made a profit from the investment in BTC, Square recorded a loss of $ 20 million in its $ 220 million stocks.

And now CFO Amrita Ahuja has revealed that Square's Bitcoin appetite has been breastfed for the time being. She speaks with Financial News specified:

At the moment we have no plans for further purchases. There are currently no plans to re -evaluate the position of the Ministry of Finance.

She added that Square would like to continue to learn with Bitcoin and that there are many options for this.

Bitcoin drives the growth of Square, but the energy consumption is worrying

Even if Square stays away from Bitcoin for the time being, the company has benefited immensely from the digital currency. In the first quarter, the company's turnover increased by an impressive 266 percent, with Bitcoin being the main growth driver. Square achieved sales of $ 5.06 billion in the quarter. Of this, $ 3.5 billion accounted for the Bitcoin business with which users can easily buy and sell crypto.

While the company will continue to offer Bitcoin services for users, the company owned by Jack Dorsey does not buy any more.

ahuja added:

We always evaluate and as always I think that we would be customer -oriented. Since we see the development of the Bitcoin product or crypto products in general, we will probably make further reviews at this point.

Of course, no discussion about Bitcoin is completely without talking about energy consumption. This debate has become even more critical in view of Elon Musk's latest debacle.

In the past, Bitcoin has defended

Square against the accusation that it was bad for the global environment. In a joint investment of $ 50 million with ARK Invest, Square claimed that Bitcoin was a catalyst for the acceptance of green energy. In the report it was claimed to "explain how the Bitcoin network acts as a unique energy buyer who could enable society to use much more solar and wind production capacities".

"We believe that today's owners of today can become the most important Bitcoin mountain people of tomorrow," said the two companies at that time.

Now the melody has changed. Even Square is concerned about energy consumption. Ahuja told Financial News:

Our position has always been that this is an area that requires innovations in terms of renewable energies and clean energy, and we want to be part of it.

She added:

There is a broader question in the supply chain of how renewable energies and clean energy generally become a larger part of the blockchain and a larger part of the entire mining and transaction network. This is the entire solid footprint of the network that we have to address.


Source: Crypto-news-flash.com