Jack Dorsey’s Square adds 4,709 Bitcoin to his balance

They even referred to cryptomeda as „an instrument of economic empowerment.

In a surprising move, Square announced the acquisition of 4,709 Bitcoin (BTC) worth about US$ 50 million at the time of this article. The company’s co-founder, Jack Dorsey, has long been an advocate of Bitcoin and cryptomeda, with the company’s CashApp allowing its users to invest in Bitcoin.

The news comes months after another publicly traded company, MicroStrategy, decided to convert a part of its fortune into Bitcoin System and currently, the company owns 38,250 BTC and its CEO Michael Saylor has become one of the most active Bitcoin advocates. Although MicroStrategy is a large company with a market capitalization of $1.5 billion, it pales in comparison to Square, which has a capitalization of $81 billion.

Square’s press release indicates that this change is a kind of ideology statement:

„Square believes that cryptomoeda is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system that aligns with the company’s purpose.

On September 30, Dorsey criticized Coinbase CEO Brian Armstrong for his apolitical leadership:

#Bitcoin (also known as „crypto“) is a direct activism against an unverifiable and excluding financial system that negatively affects much of our society. It is important, *at least*, to recognize and connect with the related social problems your clients face daily. This leaves people behind: https://t.co/0LMlF1qcmG

The press release noted that the investment represents approximately 1% of Square’s „assets at the end of the second quarter of 2020“. On 30 June, company’s total assets amounted to US$ 7.8 billion, so the acquisition may represent more precisely 0.64% of company’s assets.

Bitcoins coming from BitMEX, international exchange of cryptomoeda, can be marked as „high risk“ in Brazil by other cryptoactive companies.

Thus, with this type of marking, deposits from Bitcoins held in custody at BitMEX can be „locked“ or „refused“ by national companies.

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This may occur because Chainalysis, the blockchain research company, will initiate alert classification for its clients.

This Thursday (08) the company alerted all its clients that it will adopt the alert classification in the cryptoactives coming from BitMEX.
KYT

This way, all clients who use Chainalysis KYT’s „Know Your Transaction“ (KYT) solutions received the alert in the system.

The alert will not only work for transactions sent from BitMEX as of October 13th, but will also cover „past“ BitMEX transactions.

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In Brazil, companies such as Banco Topázio, used by Zro Bank, fintech de cryptomoedas, are among Chainalysis‘ clients.

„Any transfer after October 1st should be considered high risk. Compliance teams should also examine older transfers. However, this change will be implemented gradually, as it may trigger alerts about thousands of transfers made in the past,“ says Chainalysis.