A nightmare for giant firm Square Inc. when it saw losses reach $ 20 million in Bitcoin (BTC) investments in the first quarter of 2021.
For the record, the firm founded by Jack Dorsey has made an investment of $ 220 million in Bitcoin. The first investment is in October 2020, with a capitalization of $ 50 million. The second investment took place in February 2021, at which point Square added another $ 170 million.
As a result, Square Inc.'s Chief Financial Officer, Amrita Ahuja, explained that they have no plans to increase their Bitcoin holdings.
However, at the same time they see this situation as another opportunity for Square to delve further into the subject of Bitcoin. In fact, there is no denying the firm is constantly assessing the probability of using Bitcoin in their ecosystem.
Based on Square's financial records that ended in March, the firm revealed a loss of $ 20 million on Bitcoin investments even as the fair value increased to $ 472 million at market prices.
Bitcoin investments as stated amount to around 5% of the cash owned.
Like Elon Musk, Ahuja thinks the crypto industry needs to focus on the environment when it comes to crypto and hopes for innovation, especially in terms of clean and renewable energy.
At the time of writing, the value of BTC continues to decline with the current record at $ 42,480, down over 12% in 24 hours.
