After a Deal With Afterpay, Square May Increase In Value By 5 times — Pompliano
Digital payments company Square, led by CEO Jack Dorsey, announced a $29 billion deal to acquire Australia’s Buy Now, Pay Later (BNPL Afterpay) business on August 1.
Morgan Creek Digital co-founder Anthony Pompliano, after analysing the deal on his YouTube show “Best Business,” said Square could now rise to $1 trillion in value.
But he also added that it is realistically possible to increase Square’s value by 2-5 times, thanks to the combined potential of both firms.
Square currently has a market cap of $122.72 billion, according to Yahoo Finance.
Pomp stressed that Afterpay’s $29 billion valuation was based on 100,000 trading partners. With the opening of BNPL Afterpay services to 70 million Square Cash app users, as well as the company’s 2 million traders, Square’s stock value could skyrocket.
Square (SQ) shares are up 8% since the announcement of the purchase of Afterpay, according to TradingView, from $248 on July 30 to about $269 on August 4 (at the time of writing). Afterpay (APT) shares rose 34% from AU $95 to AU $128 in the same period.
In addition, on August 1, Square released its Q2 report, which reported that Bitcoin revenue was up 200% year-over-year, and BTC services generated $2.72 billion in revenue for the company.
Earlier, CEO Jack Dorsey and Head of Hardware Jesse Dorogusker said that the digital payments company Square is already building a hardware wallet for Bitcoin.