American financial services company Square has relaxed plans to buy Bitcoin after the company lost $20 million from its BTC investment. Square said it lost $220 million in BTC during the first quarter of 2021.
Bitcoin recorded a significant decline in reaction to Elon Musk’s criticizing comment on the king coin. Musk expressed his concern about Bitcoin using fossil fuels for mining and transactions, which could be harmful to the environment. As a result, the Tesla CEO said that the EV company would suspend accepting BTC payments for its products.
Speaking to the Financial News in an interview, Square chief financial officer Amrita Ahuja said:
“We don’t have any plans at this point to make further purchases. There’s no plans at this point to re-evaluate where we are from a treasury standpoint.”
Ahuja also said that Square has a lot to learn from Bitcoin.
Square started acquiring Bitcoin in October last year. The company initially invested $50 million in Bitcoin and added $170 million to its portfolio in February.
In a recent shareholder letter, Square said that its Cash App bitcoin sales revenue jumped 11X year-on-year. Additionally, the app saw a 79% profit growth in 2021 Q1. Cash App recorded a profit of $964 million during the period. Despite the gains, Square noted that its Bitcoin transaction margin was low.
