Payments giant Square said Tuesday it had purchased an additional $170 million of bitcoin, adding to the stash it purchased in October.
Someone should have looked at the recent price of the leading cryptocurrency before that went to press.
According to the payment processor’s press release, the company added 3,318 bitcoins to its treasury for $170 million. Doing the math, that results in a per bitcoin purchase price of $51,235.7.
Unfortunately for Square, after setting a record high above $58,000 over this past weekend, bitcoin hit a recent low of $44,964.49 before rebounding to about $48,408.31 at price time.
When Square’s announcement was released, just after 4 p.m. New York time, the price of bitcoin was below $48,000, which means those 3,318 bitcoin are worth less than $160 million.
The company made the announcement just before the release of its fourth-quarter earnings call that it had added to the 4,709 bitcoins it purchased in October 2020, which were worth $50 million at the time. Currently, that investment is worth $224 million and the company’s total value of BTC on Square’s balance sheet is $394 million.
UPDATE (Feb. 23, 22:41 UTC): Rewrites throughout to reflect the change in value of Square’s investment.