Shares of Square (SQ) are on the rise following reports that the company’s Cash app is offering select users the option to buy and sell bitcoin.
WHATS NEW: Square is now offering users the option to buy, sell or hold cryptocurrency on its Cash app. “We’re always listening to our customers and we’ve found that they are interested in using the Cash App to buy bitcoin,” a company spokesperson said. “We’re exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash App customers. We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we’re excited to learn more here.” While the app enables users to buy and sell the cryptocurrency, it still does not allow users to make payments to friends with bitcoin.
BITCOIN MAY BENEFIT SQUARE: Credit Suisse analyst Paul Condra said while the impact of Square adding the bitcoin feature is uncertain, he believes it could place Square in an early-mover position as a mainstream fin-tech company providing cryptocurrency services. The analyst added the company is also well-positioned to allow digital currency transactions at the physical point of sale. Condra reiterates a Neutral rating and $31 price target on Square shares.
PRICE ACTION: In morning trading, Square rose 2% to $40.55, while bitcoin was up 8.5% to $7,162.01.
