Today, there is a lot of green in the crypto market.
In the past 24 hours, nearly $15 billion has been added to the overall crypto market cap.
And all of this has been because of a nice pop up in Bitcoin. Yesterday, the price of BTC jumped to nearly $11,000 and today it surpassed it.
This 5.6% jump in BTC price has been the result of Jack Dorsey’s payments company Square making a $50 million investment in Bitcoin, which represents 1% of its assets.
“Given the rapid evolution of cryptocurrency and unprecedented uncertainty from a macroeconomic and currency regime perspective, we believe now is the right time for us to expand our largely USD-denominated balance sheet and make a meaningful investment in bitcoin,” noted Square in its Bitcoin investment whitepaper.
These 4,709 BTC were purchased over-the-counter over a predetermined 24-hours period to maintain transaction privacy and price slippage. These BTC are stored in its “Subzero”, the open-source Hardware Security Module-backed solution.
The community is super stoked about this, seeing it as a big development that would bring others into the market.
“A big deal,” commented Galaxy’s Mike Novogratz. “It’s not the first guy dancing. It’s the second guy. This is now a movement. Corp balance sheets.”
Novogratz also revealed that Galaxy also “has a lot of BTC on our balance sheet.”
Amidst this market euphoria, other companies also revealed that they have also invested in Bitcoin.
eToro CEO divulged that they had BTC in their treasury since 2011 and are “still Hodling.”
Jesse Powell, the founder, and CEO of crypto exchange Kraken, also admitted to it in a roundabout way as he answered a crypto enthusiast asking about when his company would make it to this list.
“You think Kraken hasn’t been accumulating bitcoin over the last 9 years?” Powell said.
While corporations adding bitcoin to their balance sheet is bullish, it is also “overrated,” according to trader and economist Alex Kruger who said, “The function of a corporate treasury is not to *invest*. Corporate demand for gold as an inflation hedge is minimal. Thus the likelihood of a bitcoin domino effect among corporates is very low.”
But the interesting thing that could happen, if this becomes a trend is “major banks would be forced to have a crypto team on payroll to service corporate clients' hedging needs,” he added.