Square, the payments company owned by Twitter CEO Jack Dorsey, revealed that for now it has no plans to make any future investments in Bitcoin.
Specifically, in an interview with the Financial News outlet, an executive cited the environmental footprint as one of the reasons behind the decision.
Indeed, the comments come just days after Tesla CEO Elon Musk announced the suspension of payments with Bitcoin for the acquisition of his vehicles. Due to concerns about the high carbon emissions produced by the network.
It is worth noting that Square became one of the main supporters of Bitcoin last year.
Square will not add more Bitcoin
In short, in an interview with the Financial News, Square’s chief investment officer, Amrita Ahuja, announced that the company has no plans to add more Bitcoin to its treasury.
Incidentally, the outlet cited the company’s recent loss of $ 20 million on its BTC investment as one of the main reasons.
In this regard, Amrita Ahuja said: “We have no plans at this time to make more purchases. The company will evaluate where we are, from the point of view of the treasury.
However, the chief investment officer was optimistic, adding that there are still plenty of other opportunities for Square to continue learning. Likewise, Amrita Ahuja, revealed that currently Bitcoin represents around 5% of the capital in its treasury.
But, in addition to the company’s losses, Ahuja noted that environmental issues were a top issue that needed to be addressed before upcoming investments in BTC.
During the interview, Ahuja stressed that the company must address Bitcoin’s carbon footprint. Looking for green energy alternatives and promoting a greater use of this type of energy sources for the Blockchain industry.
“Our position has always been that this is an area that needs innovation in terms of renewable energy and clean energy. And we want to be part of that.
To recall, Square decided in October 2020 to invest $ 50 million in Bitcoin. Then, in February 2021, the firm added another $ 170 million of the cryptocurrency to its treasury.
At the time, Square wrote that Bitcoin represented an instrument of economic empowerment that aligned with the purpose of the company.
Similarly, in the month of May, Square has registered a lateral and downward price action of Bitcoin. Although, he has seen some significant gains from his Bitcoin holdings.
“In Square’s most recent quarterly results, released on May 6, the company said it had lost $ 20 million on its investment in Bitcoin. Despite the fact that its fair value increased to $ 472 million according to market prices.
Will Bitcoin continue to be part of your investment strategy?
It should be emphasized that Square indicated that Bitcoin will continue to be part of its investment strategy, despite previous reports.
As a curious fact, the statement contradicts a report by Financial News, which cited an interview with Amrita Ahuja.
“The plans of the company have not changed. And, it will continue to evaluate the asset as an investment opportunity on an ongoing basis.
In fact, Amrita Ahuja expressed: “Our Bitcoin strategy has not changed. We are deeply committed to this community. Including working towards a greener future through our Bitcoin Clean Energy Initiative. ‘
Furthermore, he added: “And as we shared in February, we continue to evaluate our investment in Bitcoin on an ongoing basis, nothing new here.”
In fact, Jack Dorsey stated: “Bitcoin changes everything for the better.”
So, will Square or not increase its Bitcoin holdings? Leave your opinion in the comment box.
Finally, I leave you this phrase from René Descartes: “If it is not in our power to discern the best opinions, we must follow the most likely ones.”