On Wednesday, bitcoin climbed above the $ 50,000 mark after receiving another vote of confidence from major companies named Tesla.
The world’s largest cryptocurrency surged as high as $ 51,445.67 overnight after climbing 8:11 in the morning to trade 4.1 percent at $ 50,710.12 at $ 4.1 to overcome its steady decline on Tuesday. According to data from CoinDesk.
The boom came after an announcement by digital payment firm Square that it bought some 3,318 bitcoins for $ 170 million, which coincided with the $ 50 million purchase it made last year.
The Cash CEO owner – led by Twitter CEO and crypto fan Jack Dorsey – said its bitcoin investment now represents about 5 percent of its corporate cash, cash equivalents and marketable securities.
Business intelligence firm MicroStrategy – an early corporate back of bitcoin – also announced on Wednesday that it had purchased a digital currency worth more than $ 1 billion, bringing its total bitcoin investment to about $ 2.2 billion.
Firms doubled their bitcoin bets despite the wild volatility of cryptocurrency, which some experts believe will keep other large companies away from the cryptocurrency market.
“We believe the Internet needs a native currency, and we believe that bitcoin is this,” Dorsey said on the company Earning call Tuesday.
Dorsey said last year more than three million Cash App customers bought or sold bitcoins and bought them for the first time in January alone.
But Wall Street is not so confident. Square’s share price fell nearly 2.6 percent to $ 250.01 in prepaid trading on Wednesday, as it beat expectations for adjusted fourth quarter earnings reports as well as adjusted profits, but forecast defaults for revenue.
About two weeks after Tesla’s disclosure, Square’s announcement bought $ 1.5 billion in bitcoin, which fueled the coin’s staggering rally.
Major cryptocurrencies on Tuesday after Tesla chief Elon Musk said they considered the values of bitcoin and ether, the second-largest coin by market value, “seeming high.” Tumble also followed a warning by Treasury Secretary Janet Yellen that bitcoin was “highly inefficient” and “highly viable”.
The value of bitcoin still rose nearly 73 percent this year, despite falling from an all-time high of $ 58,332.36, CoinDesk data show. This has been fueled by increased interest among institutional investors as well as the increased support of cryptocurrencies from large companies.