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Square CEO Dorsey Says It May Create Bitcoin Hardware Wallet

Such a wallet holds Bitcoin but isn't connected to the Internet, thereby providing additional security. Square shares weren't affected.

Square  (SQ) - Get Report Chief Executive Jack Dorsey on Friday tweeted that the financial-services darling is thinking of constructing a Bitcoin hardware wallet.

That’s a device that holds Bitcoin but isn’t connected to the Internet. It’s favored by investors who want an extra layer of protection from holding their coins on a web-connected device, Bloomberg reported.

“Square is considering making a hardware wallet for #bitcoin,” Dorsey tweeted.

“If we do it, we would build it entirely in the open, from software to hardware design, and in collaboration with the community. We want to kick off this thinking the right way: by sharing some of our guiding principles.”

Square shares recently traded at 214.44, up 1.4%, in line with the Nasdaq Composite index.

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Bitcoin traded at $36,879, down 5%.

Dorsey tweeted 12 guiding principles for the hardware wallet.

One of them states, “The exchange you used to buy your bitcoin probably attends to your security with good intent, but circumstances may reveal custody actually means IOU.”

Square has turned into a major player in the Bitcoin space, enabling users to make purchases with bitcoin and store the digital currency in its Cash app.

The company’s shares rose May 25 amid talk that it would expand its presence in banking, with plans to offer checking and savings accounts.

Also last month, Square reported first-quarter earnings that topped analysts’ forecasts. Revenue soared almost four times in the quarter to $5.06 billion. The FactSet analyst consensus called for $3.34 billion.