With bitcoin having lost so much of its value in recent weeks, institutions that bought into the asset earlier in the year have ultimately seen their investments begin to tank. Not long ago, we reported that Tesla saw approximately $1 billion in BTC disappear since it first plugged about $1.5 billion into the asset back in February. While other companies may not have lost as much, they are certainly keeping up the losing patterns, with Square having recently joined the ranks and experiencing a $45 million dip in its overall stash.
Square Has Lost Almost Its Entire Initial BTC Investment
Square is run by Jack Dorsey, who is the same man behind Twitter, one of the largest social media companies in the world. Dorsey has long been a bitcoin and cryptocurrency advocate, having recently stated in an interview that he hopes BTC can somehow contribute to world peace.
Back in October of 2020, Square became the second major institution – after MicroStrategy two months earlier – to invest in bitcoin. The company purchased approximately $50 million worth of the world’s number one digital currency by market cap, though things didn’t quite stop there. Several months later in 2021, Square purchased another $120 million worth of the asset, bringing its total bitcoin stash to a whopping $170 million.
Now, however, with bitcoin taking so many dips as of late, it appears that stash has fallen to about $125 million, as the company’s investment has dropped by about $45 million – close to the initial amount the company had purchased. Square has mentioned that while it is a major loss, the company has still seen significant growth over the past year and has managed to rake in heavy profits from both crypto services and investments.
Either way, the firm did announce a few months ago that it had no plans to purchase any more bitcoin, likely anticipating that the currency was going to undergo further dips. It is unclear, at the time of writing, if Square has sold any of its bitcoin holdings since it first began experiencing losses.
It’s Still Got Some Big Plans
But while Square is not looking to purchase any more BTC for the time being, Dorsey still has plenty of bitcoin-focused plans for the coming future. At a cryptocurrency conference recently held in Florida, Dorsey spoke about how he was looking to invest in mining and that he would potentially build a solar-powered bitcoin mining firm. He also said that Square was on the verge of building a new bitcoin wallet.
In 2019, Dorsey said that he was considering living in Africa for about three to six months as a means of helping African populations better understand cryptocurrency and its benefits, while three years ago, Dorsey went on record to say that he thought bitcoin would become the world’s only currency by 2028.