According to the agreement, the Jack Dorsey-led company would purchase all of Afterpay’s issued shares for $29 billion (A$39 billion) based on the closing price of Square common stock on July 30th, 2021. If certain closing requirements are met, the transaction is planned to take place in the first quarter of 2022 and will be paid in all stocks.
After the deal is completed, Afterpay’s management, including co-founders and co-CEOs, will join Square to assist lead Aferpay’s companies.
Afterpay is a well-known “buy now, pay later” (BNPL) platform with offices in Australia, the United Kingdom, Canada, the United States, and New Zealand. Following the acquisition next year, Square plans to incorporate Afterpay into its Seller and Cash App platforms.
This will allow even the small retailers to offer BNPL to clients at the point of sale, allowing Afterpay users to pay in instalments directly through Cash App. As a result of the integration, over seven million Afterpay clients will be able to take advantage of Cash App capabilities such as money transfer, bitcoin, and stock transactions, among others.
“Together, we can better connect our Cash App and Seller ecosystems to deliver even more compelling products and services for merchants and consumers, putting the power back in their hands,” Dorsey said.
Meanwhile, Square’s proposed acquisition of Afterpay is just the latest in the company’s efforts to bring Bitcoin into the mainstream. In July, Jack Dorsey said that his company is launching a new DeFi business focused on Bitcoin. The project, as previously stated, will be an open-source platform allowing developers to create non-custodial, permissionless, and decentralised financial services.
In addition, the company is developing a hardware bitcoin wallet to boost the cryptocurrency’s mainstream adoption, and it has teamed with Adam Back’s Blockstream to launch a solar-powered Bitcoin mining facility in the United States.