Twitter CEO Jack Dorsey’s crypto-focused payments venture Square has agreed to buy the Australian buy now, pay later player Afterpay for USD 29 billion in all-stock terms – a merger that some believe would “build a worldwide transactions giant.”

Square, which said last month that it is developing a hardware wallet as well as a bitcoin (BTC)-focused decentralized finance (DeFi) network, will ensure that Afterpay has a crypto bent from the beginning.

In a news release, Square stated that following the acquisition, Afterpay customers will “benefit from” its own Cash App product’s “financial functions, including money transfer, stock and bitcoin purchases.”

The transaction values Afterpay’s shares at USD 92.65, with the bulk of shares owned by the Australian company’s co-founders Anthony Eisen and Nick Molnar. Dorsey’s company would also acquire a 5% minority position in Tencent, the Chinese tech powerhouse. Last year, the latter paid around USD 220 million for its interests in Afterpay.

According to Dorsey, the move will allow the companies to “better link” their “ecosystems to provide even more appealing goods and services for merchants and customers.”

Afterpay is now listed on the Australian Securities Exchange, and the financial world appears to have embraced the agreement.

According to Reuters, Truist Securities analysts anticipate Square to “invest substantially to integrate Afterpay and drive organic revenue growth.”

According to Wilsons Advisory and Stockbroking, “few other suitors” were “as well-suited as Square,” while Credit Suisse analysts called the acquisition a “obvious fit” with “strategic merit.”

The Australian Competition and Consumer Commission, which has the authority to accept or reject the merger, announced that it would “consider it carefully” once the full “details” were received.

Square Chief Financial Officer Amrita Ahuja was reported in a Bloomberg story as saying, “the objective is for Square to integrate Afterpay into both its consumer Cash App and its Seller product for small businesses.”

Meanwhile, Square revealed details of Cash App’s financial performance in the second quarter of the current fiscal year, with bitcoin-related yearly revenue increasing by 200 percent on 2020 figures (USD 875 million), reaching USD 2.72 billion in Quarter 2 of 2021, according to a letter to shareholders.

Bitcoin total revenues have surpassed USD 55 million, more than tripling last year’s number of USD 17 million. However, Square’s quarterly BTC income dropped compared to Q1 figures, most likely due to dropping or stable token prices.

For much of the quarter, Bitcoin fluctuated between USD 30,000 and USD 40,000.

Square wrote that the “relative stability” of the price of bitcoin” had “affected trading activity compared to prior quarters.”

As reported, in July, Jack Dorsey confirmed to investors that BTC will be a “big part” of the company’s future, as he sees opportunities to integrate the cryptocurrency into existing Twitter products and services. He added that it could help the company move faster in terms of its product expansion, while explaining that BTC is the “best candidate” to become the “native currency” of the internet.