In an interview for Fortune, Square CFO Amrita Ahuja spoke out in favor of the introduction of Bitcoin. In Michael Saylor, CEO of Microstrategy, Style Ahuja claimed that the cryptocurrency was part of a global development of financial services.
Square, led by Jack Dorsey, and the Saylor-led company were among the first public companies in the US to add BTC to their treasuries. Their adoption thesis to protect the value of their companies amid an inflationary macroeconomic environment. Ahuja told Fortune:
There is absolutely a reason for every balance sheet to have bitcoin. The investment we made on our balance sheet for Bitcoin is roughly 5% of our cash. We intend to hold on for the long term.
The board stated that the company’s long-term plan is to maintain its investment in Bitcoin according to the strategy proposed by MicroStrategy and Elon Musk, CEO of Tesla. Recently, that company announced the details for accepting BTC to purchase its products, and on Twitter, Musk stated that they would keep the funds in BTC.
The purchase of BTC by Square, MicroStrategy, Tesla, and others triggered a domino effect that has taken institutional participation to unprecedented levels. In Canada, 3 financial products have been approved to give investors exposure to BTC and, as analyst Lex Moskovski shows, their performance has exceeded all expectations.
Retail demand is still there.
The Canadian #Bitcoin ETF hasn’t had a single day of outflows. That is rare. pic.twitter.com/1zEVrrS0DB
– Lex Moskovski (@mskvsk) March 29, 2021
The use of Bitcoin in the Cash app is accelerated
The Covid-19 pandemic has accelerated the adoption of digital payment methods and cryptocurrencies. In support of that claim, Square’s CFO said that 1 million new consumers used the Cash app to purchase Bitcoin in January this year alone. In 2020, at least 3 million people used Square’s product to trade the cryptocurrency.
The executive announced that in support of the introduction of Bitcoin, they have eliminated transaction fees within the Cash app for cryptocurrency users. In parallel, the company will continue to give grants to Bitcoin developers to help grow the ecosystem and its protocol.
Square’s crypto division announced via Twitter that the grant recipients can choose how they wish to receive their money. Scholars can choose between BTC and Fiat currency.
As of now, Square Crypto scholars have the option to denote funding in Bitcoin, Dollars, or Calzones.
– Square Crypto (@sqcrypto) March 29, 2021
Bitcoin is trading at $ 57,675, up 4.9% over the past 24 hours. For the past week, the cryptocurrency has moved sideways (0.2%) but holds its gains at 23.9% last month.
BTC with moderate gains on the 24-hour chart. Source: BTCUSD Tradingview