First Mover: Bitcoin Hits $11K as Square Exposes $2.3T Corporate Money Pot

Payment company Square's announcement that it would invest around $ 50 million, or 1% of its assets, in Bitcoin sparked speculation that more companies could do the same.
Jack Dorsey, the Twitter CEO who also runs Square, is a longtime bitcoin bull. Hence, it wasn't a big surprise that his company would put some of its corporate liquidity into cryptocurrency. He follows the path of Michael Saylor, CEO of MicroStrategy, who has invested at least $ 425 million in Bitcoin for the company.
None other than Changpeng "CZ" Zhao, CEO of Binance, the world's largest cryptocurrency exchange, tweeted a question: "Who will be the third public company to hold #bitcoin in treasury?" Presumably it was Twitter, Tesla, Apple, Warren Buffett's Berkshire Hathaway, and even the burger chain Wendy.
Related: Rethinking Money: Fixing the Big Internet Mistake
"It's a bit surreal to see gigantic companies now knee-deep in Bitcoin," wrote Mati Greenspan, founder of forex and cryptocurrency analysis company Quantum Economics, to subscribers on Thursday.
A smart, enterprising soul even created a spreadsheet to keep track of company purchases and released it as a new website, bitcointreasuries.org:
Companies in the Standard & Poor's 500 index of large US stocks have combined cash and short-term investments of $ 2.3 trillion. A flat allocation of 1% in Bitcoin would add up to purchases of $ 23 billion. That's just over 10% of Bitcoin's total market capitalization, currently around $ 200 billion.
One big bullish investment thesis for Bitcoin is that large institutional investors are about to dive into cryptocurrencies as an asset class, led by money managers like Fidelity Investments, who have embraced new technology and digital asset markets.
Related: Ethereum is Manhattan and everyone is moving to the suburbs
Now it seems that corporate acquisitions could increase that buying pressure.
Dorsey tweeted a "white paper" to his 4.7 million followers explaining how Square had come to buy its bitcoin - noting that the transparency was intentional "so that others can do the same."
"To ensure privacy on transactions and price drops on execution, Treasury bought the bitcoin over-the-counter from a bitcoin liquidity provider that we currently use as part of Cash App's bitcoin trading product," the whitepaper said. “We negotiated a spread on a public bitcoin index and executed trades using a time-weighted average price (TWAP) over a set period of 24 hours with low expected price volatility and high market liquidity to reduce cost risk and pricing. "
Understand, corporate treasurer?
Bitcoin Watch
Bitcoin is up over 3% in the past 24 hours, hitting a three-week high of over $ 11,000.
The move confirmed a collapsing triangle breakout on the daily chart.
Even so, some analysts remain cautious and want the cryptocurrency to resist at $ 11,200 before calling for a bullish revival.
"We see the breakout of the September 19 high of $ 11,200 as a more significant catalyst for further upward movement," Lennard Neo, research director at Stack Funds, told CoinDesk. He added that the price range of $ 10,000 to $ 11,200 could hold until there is more clarity in the November US election.
The surge comes a day after payment company Square announced that it had invested 1% of its total assets by market capitalization in the largest cryptocurrency.
Prices hit $ 11,023 at 11:05 UTC - the highest since September 20 according to CoinDesk's Bitcoin Price Index.
The rally to $ 11,000 marked an upward trend over the past two weeks' range of about $ 10,500 and $ 10,800.
- Omkar Godbole
Token Watch
Tether (USDT), Solana (SOL): Tether launches Solana, the web-scale blockchain designed to compete with Ethereum, hoping to increase transaction speed while reducing costs.
Bitcoin (BTC): Billionaire Chamath Palihapitiya sees Bitcoin as an insurance policy against irresponsible actions by central banks and governments.
What is hot?
The crypto payment company Ripple is branching out into corporate loans with a line of credit to finance cross-border payments (CoinDesk).
Central bank digital currencies should work alongside cash and not compromise financial stability, says the BIS (CoinDesk).
BitMEX CTO Reed released in the US after paying a $ 5 million bond (CoinDesk)
The proposal to lower the fees for Ethereum is struggling to reach consensus as miners signal disapproval, according to a new poll (CoinDesk).
Crypto Trading App Uphold launches service with which traders can buy and sell 50 US stocks at any time of the day (Decrypt)
According to Amdax Digital Asset Exchange, it is the first crypto service in the Netherlands to register with the central bank (CoinDesk).
Decentralized exchange CoFiX collects USD 500,000 from investors such as Huobi, Dragonfly and Coinbase with the plan for a new oracle solution (CoinDesk).
Analogues
The latest on economics and traditional finance
Pelosi, leader of the opposition Democratic Party in the US House of Representatives, said Thursday she would not support airline financial aid as a standalone bill and insists on a broader aid package (CNBC).
U.S. government-backed passenger railroad Amtrak could cut 2.4,000 jobs without a new government bailout and need $ 4.9 billion (Reuters)
The Filipino broadband provider raises $ 523 million from its IPO, the country's largest since 2016, as the pandemic increases internet usage (Bloomberg).
According to the central bank, India's economy will contract by 9.5% in the fiscal year through March due to COVID-19 measures (Nikkei Asian Review).
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First mover: Bitcoin hits $ 11,000 as Square reveals $ 2.3T corporate money pot
First mover: Bitcoin hits $ 11,000 as Square reveals $ 2.3T corporate money pot

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