Jack Dorsey’s Square acquires Afterpay for $ 29 billion and allows Bitcoin purchases

Popular mobile payment platform Square announced today that it has agreed to acquire Australian financial technology company Afterpay through a multi-billion recommended, court-approved scheme of arrangement.

Square is acquiring Afterpay for $ 29 billion

The Jack Dorsey-led company said the deal would acquire all of Afterpay’s outstanding shares for $ 29 billion (A $ 39 billion) based on the closing price of Square’s common stock on July 30, 2021. The deal is anticipated in taking place in the first quarter of 2022 and in all shares paid out, certain closing conditions should be met.

The terms provide that Afterpay shareholders will receive a fixed conversion rate of 0.375 Square Class A common shares for each Afterpay common share they hold on the Record Date. The report found that Square may pay out up to 1% of the total in cash.

Square will also establish a secondary listing on the Australian Securities Exchange (ASX) to allow Afterpay shareholders to trade Square shares on the exchange through CHESS Depositary Interests (CDIs).

Upon completion of the transaction, Afterpay’s executives, including the co-founders and co-CEOs, will join Square to lead Aferpay’s affairs.

Afterpay users to access Bitcoin through the Cash app

Afterpay is a leading Buy Now, Pay Later (BNPL) platform operating in Australia, the United Kingdom, Canada, the United States and New Zealand. After the acquisition next year, Square will integrate Afterpay with its seller and cash app platforms.

This will allow even the smallest merchants to offer their customers BNPL at the checkout, so Afterpay users can make payments in installments directly from the Cash app. As part of the integration, more than seven million customers who use Afterpay will be able to take advantage of Cash App’s features, including money transfer, Bitcoin and share purchases.

Cash app customers will also benefit from the integration, as they can discover retailers and BNPL offers within the app.

Square founder and CEO Jack Dorsey believes both companies are working to make the financial system more equitable, accessible and inclusive, which gives them a “common purpose”.

“Together, we can better connect our cash app and seller ecosystems to deliver even more compelling products and services to merchants and consumers, and to put power back in their hands,” said Dorsey.

Square continues to drive BTC adoption

Meanwhile, the planned acquisition of Afterpay is just one of Square’s latest moves to bring Bitcoin into the mainstream. In July, Jack Dorsey announced that his company was starting a new DeFi business focused on BTC. As reported, the project will be an open source platform for developers of non-custody, permissionless and decentralized financial services.

The company is also building a hardware bitcoin wallet to help mainstream cryptocurrency adoption and has partnered with Adam Back’s Blockstream to launch a solar-powered bitcoin mining facility in the United States.

SPECIAL OFFER (sponsored)
Binance Futures 50 USDT FREE Coupon: Use this link to register and get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register and enter the POTATO50 code to receive 50% free bonus on every deposit up to 1 BTC.

Comments are closed.