- Square Inc shares fell after Citron research criticizes its Bitcoin Strategy.
- Citron Research claimed that the excitement that followed Square’s Bitcoin trading solution was only exaggerated.
Square Inc, New York: According to a report released yesterday 30th April, the share of Square Inc, a New York-based Payments and financial services company which stated the testing out a bitcoin relationship in March, has fallen following a critical tweet by Citron Research. Citron Research claimed that the excitement that followed Square’s Bitcoin trading solution was only exaggerated.
In a tweet posted on Monday afternoon, Citron Research sarcastically called Square Inc a “collection of yawn businesses,” adding that Square’s “SQ-Cash to BTC trading has been insignificant”. Few moments after this tweet, the shares of Square fell to $45.76 per share, which is a drop by about 3.8%. However, the share later recovered almost all of its losses, closing at 0.48% lower than its value at the start of the day. Citron also declared a short-term target of $30, or 36.9% below Friday’s close.
$SQ Short term tgt $30 started as innovative pymt co. – now just another processor. 15x rev growing slower than $FB. Collection of yawn businesses. WallSt drunk on Bitcoin nonsense, SQ-Cash to BTC trading has been insignificant. Even w/ hyper growth still 40% too rich
— Citron Research (@CitronResearch) April 30, 2018
The stock price of Square Inc, a company founded by Twitter CEO Jack Dorsey, has not really experienced substantial changes since it launched Bitcoin trading via its peer-to-peer Square Cash app last Jan. With the Square Cash app, users can buy as much as $10,000 worth of Bitcoin a week with no selling limit.
Jack Dorsey, last March, had forecasted that in about ten years, BTC would become the world’s single future currency. Though, he reportedly does not believe that Bitcoin presently has the abilities to become an effective means of exchange due to its costliness and slowness.