Posted 5 months ago | by @devadmin
Cash App, the mobile payment service of Square Inc. has generated more than $1.63 billion in Bitcoin revenue in Q3 2020 according to its earnings report.
Square released its Q3 2020 earnings report revealing that the company has generated a large amount of its profit from Bitcoin trading.
Cash App, launched its Bitcoin trading in 2018 to enable users to buy and sell BTC. The company wrote the following in its earning report:
“Cash App generated $1.63 billion of Bitcoin revenue and $32 million of Bitcoin gross profit during the third quarter of 2020, up approximately 11x and 15x year over year, respectively.”
“Bitcoin revenue and gross profit benefited from an increase in Bitcoin actives and volume per customer,” the report added.
Barrons reports following the announcement of its earnings report, Square’s stock surged:
“Shares of Square (ticker: SQ) were up 12% Friday, to around $196, after the digital-payments company blew past revenue and earnings estimates for the third quarter. The company is seeing steady growth in customers and transactions on its Cash app, along with payment services for small businesses. And it’s benefiting from a surge in Bitcoin transactions, which customers can trade and store on its Cash app. “
Square’s CEO, Jack Dorsey who is also subsequently Twitter’s CEO, has long been bullish on Bitcoin, calling it “the internet’s money.”
In May, Square reported its Bitcoin revenue for the first quarter was $306 million, and a total revenue as a company of $1.38 Billion. Coindesk reports that in the second quarter of 2020 the publicly traded payments company sold $875 million through its Cash App with $17 million in profit. While, Square sold $516 million in Bitcoin over the entire year of 2019.
During its second quarter Square also purchased $50 million dollars worth of Bitcoin, stating in a statement: “cryptocurrency is an instrument of economic empowerment and provides a way to participate in a global monetary system, which aligns with the company’s purpose.”
“We believe that Bitcoin has the potential to be a more ubiquitous currency in the future,” said Square CFO Amrita Ahuja. “For a company that is building products based on a more inclusive future, this investment is a step on that journey.”
Dorsey has long been bullish on Bitcoin and hes committed to buying $10,000 worth of Bitcoin (the max) a week from his own Square app.
Square is one of few companies holding the covetted Bitlicense from the New York Department of Financial Services (DFS).
Dorsey previously told the Times of London there will be a single world currency in the next ten years and Dorsey believes that will be Bitcoin.
“It’s slow and it’s costly,” Dorsey spoke about Bitcoin as a currency, “but as more and more people have it, those things go away. There are newer technologies that build off of blockchain and make it more approachable.”
Though the world’s most popular digital currency “does not have the capabilities right now to become an effective currency,” Dorsey explained the “world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be bitcoin,” expecting this to take place “probably over ten years, but it could go faster.”
Dorsey has previously described blockchain technology as “the next big unlock… something that at first is normally applied to accounting terms, but has the potential to be applied to so much more,” at the Computer History Museum in Mountain View, California, in an interview with The Verge.
“I think there are going to be a bunch of people who say, ‘Blockchain, let’s go apply it everywhere’ and ‘Let’s try to solve every single problem with it,’” Dorsey said, “in the same way that we try to solve every problem with machine learning and data science and deep learning and artificial intelligence. And I think we need to be more thoughtful. What are people struggling with? How does the technology help them progress or does it distract them?,” Dorsey said.
Dorsey who also serves as Twitter’s CEO has hinted last September that big things could be coming for Twitter in regards to Bitcoin, which means we could see Twitter having a Bitcoin tipping option in the future.
Square became the second publicly-listed company after MicroStrategy to invest in Bitcoin and many others are now following including investment banks. MicroStrategy previously invested over $400 million into BTC.
Bitcoin is currently trading at [FIAT: $15,362.28] UP +2.9% in the last 24 hours according to Coingecko at the time of this report.