Square Inc increased the bank on bitcoin by spending $170 million more as well as President Jack Dorsey assured on Tuesday to “double down” on the settlement company’s commitment to the world’s largest cryptocurrency.

“The Web needs an indigenous money, and also our team believe bitcoin is it,” the longtime bitcoin fanatic and also chief executive of social media company Twitter Inc stated.

Square got 3,318 bitcoins in the 4th quarter, including in the mainstream acceptance of the digital money that has been winning support from numerous big financiers.

“By us possessing bitcoin, our rewards are straightened with skin in the video game,” Dorsey said on a post-earnings conference call with analysts.

Square has actually been involved with the currency for many years and also its Cash App, a settlements solution, has allowed customers to trade it since 2018.

The app had 3 million energetic bitcoin customers in 2020, with a million brand-new users acquiring the currency for the very first time in January, the firm stated.

In October last year, Square bought about 4,709 bitcoins at an aggregate price of $50 million. Ever since, the coin’s cost has actually scaled record highs, with Tesla Inc spending $1.5 billion and also Financial institution of NY Mellon Corp claiming it will set up an unit to aid its customers handle electronic assets.

In its most current acquisition, Square paid more than $51,200 per bitcoin, according to Reuters calculations. However, the place price of the currency on Tuesday crashed more than 13% to listed below $47,000 amidst a broader market downturn.

Shares of the company dropped about 5% after the bell on Tuesday, prolonging losses booked throughout the session.

Square’s profits in the quarter more than increased to $3.16 billion, which the firm claimed was assisted by bitcoin purchases on Money App.

Square’s gross profit on bitcoin trading increased 13 times in the fourth quarter, however it was still simply 2% of its income from the cryptocurrency. Its bitcoin holdings are currently worth concerning 5% of its $4.4 billion cash stack.

The business posted modified profits of 32 cents per share, defeating market assumption of 24 cents.