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When Square, the payments app run by Twitter CEO Jack Dorsey, announced on Thursday that it was shifting $50 million from its corporate treasury into bitcoin, the crypto markets immediately began to flash green.

The company said on Twitter: “Square believes cryptocurrency is an instrument of economic empowerment and provides a way to participate in a global monetary system, which aligns with the company’s purpose.”

Square is the second corporate player to announce such a move. MicroStrategy, an American business intelligence software firm, recently led the way with a $425 allocation. Analysts say this illuminates a fiscal path for other firms looking for a way to avoid heavy losses from currency devaluation, an expected result of expansionist monetary policy – money printing – intended to address the economic impact of the Covid-19 pandemic.

MicroStrategy boss Michael Saylor, who recently said bitcoin might be “1,000 times better than gold,” commented on Twitter: “#Bitcoin makes a fine treasury reserve asset. My admiration goes out to @jack and the @Square team for leading the way.”

Crypto tycoon Tyler Winklevcoss said Square and MicroStrategy have opened the institutional investment floodgates: “First, it was @michael_saylor and publicly traded @MicroStrategy buying $425million of #Bitcoin. Today, it is @jack and @square buying $50million of bitcoin. Tomorrow, it will be another visionary leader, and another, and another…the tsunami is coming.”

Significantly, Square has not just invested in bitcoin – it has provided a blueprint for other firms wishing to do the same, said Dorsey. Such a large-scale move is difficult to execute discreetly, so Dorsey’s guidance will likely be welcomed.

Bitcoin advocate Anthony Pompliano said Dorsey’s move to facilitate a broader corporate shift into bitcoin was extremely bullish.

He tweeted: “Everyone is looking at Square’s Bitcoin purchase, but this may be more bullish: “Square has open sourced documentation to articulate the process behind the execution of its purchase as others consider similar strategies.”

He added, “Corporations are right at the beginning of using bitcoin as a reserve asset now. Eventually central banks will use bitcoin as a reserve asset as well.”

Which firm will be next?

Now that two dominoes have fallen, industry players are wondering which firm will be next.

Meltem Demirors of CoinsharesCo, said, “It’s so exciting to see visionary companies like Square leading the way. Can’t wait to see who will be next!”

But not everyone who follows the crypto market was impressed.

Grumpy goldbug Peter Schiff, arguably bitcoin’s most savage critic, tweeted: “Bitcoin spiked 4% on news that Square invested $50 million (1% of total assets) into #Bitcoin. But that buying has already taken place. Speculators are betting the announcement will attract new buyers. The real news is Square’s buying failed to push Bitcoin above its 2019 high.”

While Square’s announcement did not, as Schiff pointed out, move the needle that dramatically by bitcoin standards, it did result in a very green day for altcoins, many of which have experienced sharp corrections recently.

Youtuber EllioTrades Crypto said “Uncle Jack’s crypto stimulus” move was very bullish indeed: “This new dose of stimulus has once again lit the crypto markets ablaze and good projects are showing green numbers across the board.”

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Fellow YouTuber Lark Davis shared his enthusiasm: “Holy cow!!! Square invests 50 million equal to 1% of their cash holdings into #bitcoin! It’s happening guys! This is HUGE.

He added: “By 2025 publicly traded companies buying #bitcoin will be so normal and mundane it will no longer even be news worthy! Stack those sats guys, moon rocket is on the launch pad!”

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