Square shares go down moments after Citron Research slammed Bitcoin strategy

Square shares dropped by 3.8 percent to $45.76 per share and then recovered to close at 0.48 percent lower than its start-of-day value. The tweet claimed Wall Street was drunk of Bitcoin  

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Citron Research’s tweet on Monday that Square was a “collection of yawn businesses” and that the strategy was “insignificant,” caused Square shares to fall by 3.8 percent to $45.76 per share.

Although the price recovered most of the losses, it closed 0.48 percent lower than its start-of-day value. Citron, which is a short seller, also announced a short-term target of $30, or 36.9 percent below Friday’s close.

Nomura Instinet research analyst Dan Dolev had earlier set the price for Square at $65.

The tweet, which claimed that “WallSt (was) drunk on Bitcoin nonsense” and possibly hyped up, came months after launching of Bitcoin trading by the Square app.

Square price has gone up by 34 percent this year so far. It allows peer-to-peer Bitcoin trades among users in the United States. With it, customers can buy up to $10,000 of BTC a week with no selling limit.

Bitcoin trading feature

Square added Bitcoin trading feature in the wake of an increase in interest for cryptocurrency trading. Although Dorsey said in March that Bitcoin will become the world’s single future currency in ten years, the comments did not go well with some people.

What do you think of claims by Citron that Wall Street is drunk about Bitcoin?

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David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.

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