Shares of Square (NYSE:SQ) were rising this morning on seemingly no company-specific news. But investors may be pushing the fintech stock higher as the price of Bitcoin (CRYPTO:BTC) crossed over $50,000 on Sunday for the first time since May.
Square’s stock was up by as much as 4% this morning and had gained 2.7% as of 10:57 a.m. EDT.
Square users can already buy, sell, and store their Bitcoin through Square’s Cash App, and CEO Jack Dorsey said last month that the company is working on a “decentralized financial service” that will tap further into the cryptocurrency market.
The recent jump in Bitcoin’s price might have come after PayPal Holdings said that its U.K. customers will be able to buy, sell, and store cryptocurrencies starting this week.
Any positive news coming out of the crypto market has the potential to boost the share price of stocks that are building out cryptocurrency businesses, and it appears that this is what’s happening with Square’s stock today.
Square’s share price has been on a roller coaster ride in 2021, but it has still gained about 25% year to date. The company reported its second-quarter 2021 results earlier this month, with earnings surpassing analysts’ consensus estimates.
Additionally, Square announced that it’s buying the Australian-based buy now, pay later company Afterpay for $29 billion.
With the company delivering strong financial results recently, moving further into the crypto market, and snatching up other companies to expand its fintech footprint, it’s no wonder investors are generally optimistic about this company right now.
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