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Source: coindesk.com ·
Square, the payments company helmed by Twitter CEO Jack Dorsey, announced Thursday it has purchased 4,709 bitcoins.
Pierre Rochard - @pierre_rochard
3 months ago
RT @PorterhouseMD: @bitstein literally trolled Square into buying a ton of Bitcoin https://t.co/89ffzEt6Jh
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Paul Sztorc - @Truthcoin
3 months ago
It's so nice the Tw itter algorith ms are forcing me to see tweet after tweet of this utterly boring news https://t.co/E9b2KOw7Vu
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Miko Matsumura ㋡ - @mikojava
3 months ago
RT @collectionist: Will we see public companies put > $1b into btc before year’s end? I think so... Square Puts 1% of Total Assets in Bitcoin in Surprise $50M Investment - CoinDesk https://t.co/16IOfi9Rlw
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Michael Goldstein - @bitstein
3 months ago
RT @PorterhouseMD: @bitstein literally trolled Square into buying a ton of Bitcoin https://t.co/89ffzEt6Jh
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Ari Paul - @AriDavidPaul
3 months ago
Microstrategy, Square, need 1 more and we have a trend of public companies allocating treasury to bitcoin. https://t.co/xJdtRBZIJv
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Michael Casey - @mikejcasey
3 months ago
Important.
Square Puts 1% of Total Assets in Bitcoin in Surprise $50M Investment https://t.co/HCo5hLddBS via @coindesk
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rydan
3 months ago
Seems like an easy way to make a quick buck. Their purchase didn't raise the price. Their announcement did. So they could just put 1% in, make announcement, sell that 1% for a huge profit, then make a second announcement a quarter later declaring they sold in the last quarter dropping the price. Rinse and repeat.
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Vigilias
3 months ago
Once you truly understand bitcoin and blockchain you'll realize how many core problems of society that can realistically be solved with it.
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shyfty01
Tin 3 months ago
If you didn't know, square bought $50,000,000 USD worth of BTC... shhhhhh, not many people know this info
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sincerely_me
3 months ago
Is that why the price shot up minutes before my weekly purchase this morning?
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admiralCeres
3 months ago
Jack Dorsey is the biggest bull there is in Bitcoin. The Square and Twitter CEO has a one word bio on his Twitter profile ("Bitcoin"). That's it. So the biggest believer only put in $50M so I doubt other corporate CEO's will do much more than that and will probably do a lot less or nothing at all. MSTR buying $425M was a one-off fluke. Also, the price hardly moved on this purchase as it was done OTC which means there are a lot of Bitcoins up for sale and it will be very hard to move the price with this type of buying. Sorry for the cold water.
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BashCo
3 months ago
I honestly don't think Jack is anywhere near the biggest bull in bitcoin. I do appreciate that he's funding development and is well positioned to expand adoption drastically. And I'm happy he has good advisors who have steered him away from shitcoins.
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TheGreatMuffin
3 months ago
> And I'm happy he has good advisors who have steered him away from shitcoins.
Those goddamn meddling toxi maxis at it again /s
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patrickk
3 months ago
They've been buying and selling back through the app since 2011 I believe. It's one of the major growth factors on their revenue and the last few earnings calls have had a partal focus on this.
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zenethics
3 months ago
They have so much reserve cash, its silly to me that they only put in 50M. But its not nothing, and its definitely another domino to fall.
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CraftyMuthafucka
3 months ago
From an institutional perspective, 1% isn't a small move. Amateur investors often don't realize just how much portfolio diversity is industry standard.
For a comparison, here is Lyn Alden's portfolio allocation from her latest newsletter.
https://i.imgur.com/quRB8NR.png
Alphabet (GOOGL) has 10% of her growth stock allocation. Meaning 1% in total portfolio allocation.
Having 1% of your portfolio in Bitcoin is a solid move.
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TheGreatMuffin
3 months ago
> For a comparison, here is Lyn Alden's portfolio allocation from her latest newsletter. https://i.imgur.com/quRB8NR.png
Wait, it has no bitcoin on it though, or is it just some example of a portfolio she's given?
She was on a bitcoin podcast tour recently, and I think she strongly advocates for a bitcoin allocation so it'd be strange if her portfolio didn't have any?
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ZeroBeforeSunset
redditor for 1 week 3 months ago
Seems like a good move. It could be a risk, but when you look at it on the scale of things, 1% isn’t a lot. I’m sure they would be able to unload it pretty quickly if they wanted too since CashApp sells Bitcoin.
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Satoshi_Disciple
3 months ago
Not yet. Square is directly involved in Bitcoin as per its business. So, it's not surprising that they put some money in Bitcoin.
The real "begins" moment is companies other than MicroStrategy (companies that are not related to the Bitcoin protocol development) putting some into Bitcoin.
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TheAnalogKoala
3 months ago
With all these companies and institutions making big buys, why isn’t the price going up more? It seems demand is up...
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yourstreet
3 months ago
I think the commenter above has it: these two purchasers are both involved in some capacity in Bitcoin. When some unrelated concern dives in like this, buying their 1% of cash reserves, then yes.
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SnowBastardThrowaway
3 months ago
Well, clearly there are just as many people doing the opposite and happily selling at these prices.
Do I think BTC will be worth much more than $11k some day? Yes. But that wouldn't stop me from selling a shit ton of my BTC if I had like 10,000 of them.
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bittabet
3 months ago
They’re buying over the counter and not pumping the market price up crazily. But nonetheless this will reduce supply. It typically takes a year or so after each halvening before supply really starts to be too low for demand, this might pull it forward a bit.
Nonetheless probably would be best if more than two companies did this lol
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alive_consequence
3 months ago
I mean, 50M on a 200,000M market cap is 0.025%... And as I write this, Bitcoin is up 2.5% in the last 24 hours, so...
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TheAnalogKoala
3 months ago
That’s not how supply and demand work. Prices move on the margins. It is spot supply vs spot demand, not demand vs market cap.
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IgnitionIsland
3 months ago
And all of this was done OTC so no real spot involved other than slow buying over a period of weeks, it was maybe 10% of daily volume over 10 days if that.
None of that would move the market, but the news of them buying did.
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Chukril
3 months ago
Lmao dude thought Jack Dorsey wakes up and logs into kraken and puts in a $50M market buy.
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alive_consequence
3 months ago
Yeah, right, market cap doesn't have anything to do with supply and demand. Market cap is only the number of multiplying the current supply per the price the people is willing to pay for a unit of that supply.
/s
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trilli0nn
3 months ago
The entire concept of “market cap” is not applicable to bitcoin or any other cryptocurrency.
The total sum spent purchasing all bitcoin currently in circulation is not equal to the market cap. It’s only a small fraction of that. For instance, a sizable amount of coin in the early days were obtained for free or below a dollar.
The total sum to be received by everyone holding bitcoin in case bitcoin is sold off until it hits zero is also not equal to its market cap. It will be an amount much, much lower.
Also, market cap is easy to manipulate especially when liquidity is low.
In conclusion, market cap is pretty much a meaningless number for cryptocurrencies.
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TheAnalogKoala
3 months ago
Perhaps you did see how I said “spot” demand and supply.
Bitcoin in deep cold storage is included in market cap but has very little to do with available supply to meet current demand.
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iTradeSocial
redditor for 6 weeks 3 months ago
It might be in cold storage but sitting to the side waiting for price to hit 20,000 or.. 2.00 I'd buy if it hit 2.00.. or even 3.00. :)
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alive_consequence
3 months ago
How long does it take to take Bitcoin out of cold storage? You can do it in a matter of hours if you want. Unless you are looking at the price change in really short time frames, cold storage doesn't matter. Bitcoin is probably the most liquid asset in the world.
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TheAnalogKoala
3 months ago
The fact is most people are holding long term and don’t care about price swings. Few people are willing to pull their bitcoin out and sell when it goes up a thousand. Therefore market cap is misleading. Most people aren’t treating bitcoin like a fungible asset.
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alive_consequence
3 months ago
Even Michael Saylor said he was ready to sell his hundred of millions of dollars at any moment just in case. All your talk about spot demand and supply is meaningless in a time frame larger than a few weeks.
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TheAnalogKoala
3 months ago
And you can put a house on the market fast too. That’s crazy you think Bitcoin is more liquid than USD or other national currencies.
Price is set by last sale. That’s why Bitcoin has such dizzying jumps and falls.
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alive_consequence
3 months ago
Are you seriously saying that real estate is as liquid as Bitcoin? Lol.
And you could easily turn millions of bitcoin into any national currency at any moment 24/7. I don't know what are you even talking about.
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TheAnalogKoala
3 months ago
No I’m not saying that. I’m saying USD is more liquid than bitcoin. And transaction limits for bitcoin make it unsuitable for a national currency. Lightning is not yet even close to up to the task. But ok.
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alive_consequence
3 months ago
Who is even talking about Bitcoin as a national currency?
My whole point is that 50M is nothing relative to the current market size. Market cap is important because it gives you an idea of the size of the market. Obviously there are other important indicators as volume, etc. But disregarding market cap and implying I don't know what I'm talking about for using it as an indicator was arrogant and ignorant.
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MotherPotential
3 months ago
Is there more reading on this kind of stuff? (more specifically, I mean, not general supply and demand)
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TheAnalogKoala
3 months ago
Any macroeconomic text will do. This is why real estate can have fast rise and falls, since most houses don’t transact you have a small number of houses in play at a given time.
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TheAnalogKoala
3 months ago
Yes, but we are talking about the recent corporate buys here. Microstrategy bought in at 11k so the price is down since these big buys started. Do try to keep up.
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ElephantsAreHeavy
3 months ago
Yes,... it must be that the price is set, not only because of demand but also because of supply. It must be that many investors want to sell because the asset became more valuable and they want to secure their gains. Maybe people need to sell because they lost their jobs or other investments due to bitcoin-unrelated events unrolling on the globe nowadays.
If demand goes up, and price does not rise, it means supply goes up too.
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punchbagged
3 months ago
Also, they will not trade naively enough to move the market. Michael Saylor is on the record saying he bought strategically over many weeks in small amounts so he didn’t pump the price. The positive effect on price comes later because they’re taking supply off the market (in microstrategy’s case for “100 years”)
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TheAnalogKoala
3 months ago
That would still increase the price. It would increase it slowly but he can only buy slowly if bitcoin are available. Demand is aggregated over lots of players and it would have increase during his buying spree. The difference would be a pump versus a more natural increase. We saw neither. That’s what I’m confused about. Saylor made a massive buy, has been talking non-stop about it since, and the price is still down (slightly). What gives?
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TheAnalogKoala
3 months ago
I’d bet money they aren’t the only ones. Public companies have to disclose these investments. Private companies do not. Of course I have no proof but it seems likely.
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BuffyHumanSlayer
redditor for 1 week 3 months ago
if they had balls they would do 100%. Enough of this 1% shit.
edit: wow downvotes? I guess you guys aren't maximalists after all. Just a bunch of corporation dick suckers.
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Glue_CH
3 months ago
They diversify there portfolios because they are informed about options with different risk/profit levels. The fact that you are all in to bitcoin or any single asset for that matter just make you look like either an uninformed person or a gambler.
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cbster
3 months ago
I am 100% sure that people who make decisions this way do not end up in charge of companies such as Square haha
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ztsmart
3 months ago
Smart of Microstrategy and Square to do this. There aren't enough lifeboats for all companies.
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simplelifestyle
3 months ago
> Smart of Microstrategy and Square to do this. There aren't enough lifeboats for all companies.
Microstrategy and GBTC stock [also rising today](https://gyazo.com/6324d361203770f8a7df18b2f76fd1be).
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1fastdak
3 months ago
Sure there are. The lifeboats just get more expensive ... much more expensive.
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