Here’s how the company owned by Twitter CEO Jack Dorsey bought 4709 BTC

Square said Thursday it bought 4709 bitcoins, worth approximately $50 million. Here’s how the deal went.

Square, the payments company helmed by Twitter CEO Jack Dorsey, announced Thursday it has purchased 4709 bitcoins.

Payment company Square has revealed how they came to the decision to invest in Bitcoin, how they made the purchase of approximately 4709 BTC, and methods to ensure the security of asset storage. Disclosure of this information was considered important, as other firms are also exploring similar opportunities.

Some more details from Square’s Chief Financial Officer, Amrita Ahuja:

“We believe that bitcoin has the potential to be a more ubiquitous currency in the future. As it grows in, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.”

According to the press release, investments in BTC were approximately 1% of Square’s total assets at the end of the second quarter of 2020.

To maintain confidentiality and reduce purchase costs, Square has purchased bitcoins in the OTC market through a liquidity provider used to trade cryptocurrency in the Cash App. The firm has agreed with an OTC broker on a spread over the public Bitcoin index. The parties used the weighted average price for the transaction within an agreed 24-hour period.

The counterparty was not disclosed. For “cold” storage of bitcoins the company uses its own solution SubZero with support for a hardware security module, which was introduced in 2018.

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