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Summary
- Square Inc stock surges as company increases stake in Bitcoin to USD 220 million.
- Its revenues grew by 140 percent to USD 3.03 billion in the third quarter of 2020.
- It was among the top volume leaders, with 26 million stocks traded on Wednesday.
American technology software company Square Inc. (NYSE:SQ) was trending on news and social media sites after it announced the investment of USD 170 million in Bitcoin on Wednesday. Square’s decision to invest in cryptocurrency has generated huge investors’ interest in the stock.
Square raised its stake in the cryptocurrency with an additional purchase of around 3,300 Bitcoins for USD 170 million on Wednesday. It had earlier invested USD 50 million in cryptocurrency.
Announcing the purchase, the company said that digital currency is the future of transitions and an instrument of economic empowerment for people.
©Kalkine Group 2021
Square stocks were trading at USD 237.32 per share at the close. It was one of the volume leaders on Wednesday with a massive 26 million stocks being bought or sold in a single day.
The company has a market cap of USD 92 billion and provides various payment solutions to its clients across different geographies. It had recently launched the payment network Cash App.
Company Performance
The stock has been steadily gaining value over the past couple few weeks, rising by 9 percent in the last 30 days and 11 percent in the past three months.
The 10-day and 30-day average volumes were 11 million and 9 million, respectively. But Wednesday’s 26 million volume surge could be a milestone in the company’s stock history.
In the third quarter ended September 30, 2020, the company reported a 140% revenue growth of USD 3.03 billion, compared to the corresponding period in the previous year.
The gross profit was up 59% year-over-year to USD 794 million.
The Cash App has proven to be a great money-spinner for the company. Customers use the software to transfer money or to make purchases online. The company has offices in over half a dozen countries including the US, Australia, Japan, and the UK.
