Square buys Bitcoins for $170 million – Square stock falls sharply

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The U.S. payment service Square, co-founded and run by Twitter CEO Jack Dorsey, has bought some 3,318 Bitcoins for $170 million (140 million euros).

The company announced the investment on Tuesday after the U.S. stock market closed, calling it “part of an ongoing commitment to the cryptocurrency.”

Square had previously acquired Bitcoins for $50 million and is also looking to integrate the digital currency into its payment services. Square’s shares, however, are currently down a hefty 7.62 percent to $237.05 on the NYSE, despite the company more than doubling revenue in the latest quarter and beating market expectations with its annual report.

Interest in bitcoin from major companies had surged recently, fueling the breathtaking price rally in recent weeks. For example, U.S. electric car maker Tesla invested $1.5 billion in Bitcoins and financial groups such as MasterCard announced plans to open up to digital assets.

After the Bitcoin high, it initially went steeply downhill this week: on Tuesday, the price temporarily fell below 45,000 dollars, after a record high of 58,354 dollars had been marked at the weekend. In the longer term, however, the price gains remain spectacular – a year ago, one Bitcoin cost less than 10,000 dollars.

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