Twitter CEO Jack Dorsey said this week that his payments firm Square invested $170 million in Bitcoin at an average price of $51,200.
"Combined with Square's previous purchase of $50 million in bitcoin, this represents approximately five percent of Square's total cash, cash equivalents and marketable securities as of December 31, 2020," they announced.
The announcement has come at a time when the Bitcoin value has surged dramatically over the past few months, reaching a high of $58,000, before falling to $45,000 in under 24 hours on Monday, correcting $7,000 in under an hour. Bitcoin is trading around $48,000 at the time of writing.
Square saw 1 million users buy bitcoin for first time during January, which is 300% higher than its active users for 2020. “We had 3 million people transact in bitcoin through Cash App in 2020 and 1 million who were new to bitcoin in January,” according to their CFO. Bitcoin is still up more than 70% year to date and over 450% in the last 12 months.
"Aligned with our mission, Square believes that cryptocurrency is an instrument of economic empowerment, providing a way for individuals to participate in a global monetary system and secure their own financial future," said the company in a statement.
On Sunday, the crypto Clubhouse group Black Bitcoin Billionaires announced a new partnership with Dorsey’s Square to create “more black millionaires” through a month-long campaign called Satoshi Millionaire.
On Monday, Dorsey was sued by a Twitter shareholder claiming he breached his fiduciary duties to the social media company by giving advertisers broad access to users’ private data, and alleges that his other payments company, Square, has also "benefitted wildly from this disregard for privacy." The plaintiff is asking the court for an order requiring Dorsey to either devote himself full-time to his position as CEO of Twitter, or resign. The complaint is related to alleged violations of Federal Trade Commission Act where Twitter was asked to pay between $150 and $250 million to resolve the FTC allegations. Twitter has not responded.
Dorsey, with 50% of voting power at Square, is accused of allegedly using Twitter’s user data policy to provide Square with information that allowed it to grow its user base and increase revenues. Dorsey, according to the lawsuit, has been actively trying to facilitate the onboarding of over 330 million monthly average Twitter users into Square and Cash App products.
On February 12, Rapper Jay-Z (Shawn Carter) teamed up with Jack Dorsey to launch a roughly $24 million fund to help develop bitcoin in developing markets like India and Africa. The fund’s mission is to make bitcoin “the internet’s currency." Jay-Z is considered hip-hop's first billionaire, having a combined net worth of over $1.35 billion with wife Beyoncé.
"JAY-Z and I are giving 500 BTC to a new endowment named ₿trust to fund #Bitcoin development, initially focused on teams in Africa & India," Dorsey announced in a tweet. The fund is currently hiring a Board of Directors.
Dorsey, like Like Elon Musk, has made his passion for Bitcoin very public. His Twitter bio simply reads "#Bitcoin." Twitter finance chief Ned Segal said this week that Twitter might add bitcoin to its balance sheet later this year.
Jack announced in December 2019 that he was going to move to Africa for at least 6 months, but his plan was delayed due to the pandemic.