Square will not buy more Bitcoin

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Et tu, Square? Square has joined Tesla in turning against Bitcoin. The fintech and digital payments company declared earlier today that it doesn’t have plans to purchase more Bitcoin in the near future.

The firm referred to the carbon footprint of the Bitcoin network, highlighting how it is a real issue that needs to be tackled in the future. The original cryptocurrency has been under a barrage of critics and environmental advocates who argue that there are better alternatives than Bitcoin.

These declarations were made by Square CFO Amrita Ahuja in an interview with Financial News, where she said:

“We don’t have any plans at this point to make further purchases. There are no plans at this point to re-evaluate where we are from a treasury standpoint.”

Ahuja also referred to the environmental concerns that the Bitcoin network has awakened recently:

“Our position has always been that this is an area that needs innovation in terms of renewables and clean energy, and we want to be a part of that. There’s a broader supply chain question around how renewables and clean energy become a greater part of the blockchain in general, and a greater part of the overall mining and transaction network…It’s the overall fixed footprint of the network that we need to address.”

The company had actually released a research paper last month that showed how Bitcoin could act as a catalyzer for miners to embrace new, cleaner forms of energy in the long run. However, there has been an overall concern for the carbon footprint the network uses to function properly.

Square was one of the first to jump onto the Bitcoin bandwagon, and its CEO Jack Dorsey is a big proponent of the original cryptocurrency. In fact, he bought $50 million worth of BTC last October, and doubled down on its bet this February, spending an additional $170 million.

As of right now, company is holding 5% of its cash holdings in Bitcoin, and it accounted for an impairment loss of $20 million on its investment during the first quarter of 2021 as revealed in its most recent earnings call.

What do you think of Square not planning to purchase more Bitcoin?

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