Square’s Bitcoin Revenue Tops Fiat Figures for Q1 2020
- Cash App brought in $7 million in profits from Bitcoin sales.
Square, a US-based mobile Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term startup, announced its first quarterly figures on Wednesday and, interestingly, revenue from its Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term-based services topped its mainstream financial services.
The total revenue of the Cash App stood at $528 million for the first quarter of 2019, out of which $306 million were from Bitcoin sales and the rest from fiat-based services.
Despite the impressive figures, the platform only made $7 million in profits from Bitcoin sales. For fiat-based services, however, the majority were in profits - the company earned $178 million in profits from non-Bitcoin revenue.
“In the first quarter, Cash App gross profit grew 115% year over year,” the company stated.
“We deduct bitcoin revenue because our role is to facilitate customers’ access to bitcoin. When customers buy bitcoin through Cash App, we only apply a small margin to the market cost of bitcoin, which tends to be volatile and outside our control,” the shareholders’ letter explained the low-profit margin for Bitcoin-based services.
More and more people are buying Bitcoin
Notably, the profits from the Bitcoin saw a significant rise as, for the entire 2019, Square Bitcoin-related profits only stood at $9 million. This is primarily due to the steep rise in Bitcoin revenue - the platform generated only $178 million from Bitcoin sales last year and merely $65 million in the first quarter of 2019.
“Bitcoin revenue for the three months ended March 31, 2020, increased by $240.6 million or 367%, compared to the three months ended March 31, 2019. The increase was due to growth in the number of active bitcoin customers, as well as growth in customer demand,” Square stated.
Meanwhile, Square is also gearing up to launch lending services after obtaining approval from the US Federal Deposit Insurance Corporation (FDIC). It will provide commercial loans to the merchants using Square and is aiming to launch services by the next year.
Square, a US-based mobile Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term startup, announced its first quarterly figures on Wednesday and, interestingly, revenue from its Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term-based services topped its mainstream financial services.
The total revenue of the Cash App stood at $528 million for the first quarter of 2019, out of which $306 million were from Bitcoin sales and the rest from fiat-based services.
Despite the impressive figures, the platform only made $7 million in profits from Bitcoin sales. For fiat-based services, however, the majority were in profits - the company earned $178 million in profits from non-Bitcoin revenue.
“In the first quarter, Cash App gross profit grew 115% year over year,” the company stated.
“We deduct bitcoin revenue because our role is to facilitate customers’ access to bitcoin. When customers buy bitcoin through Cash App, we only apply a small margin to the market cost of bitcoin, which tends to be volatile and outside our control,” the shareholders’ letter explained the low-profit margin for Bitcoin-based services.
More and more people are buying Bitcoin
Notably, the profits from the Bitcoin saw a significant rise as, for the entire 2019, Square Bitcoin-related profits only stood at $9 million. This is primarily due to the steep rise in Bitcoin revenue - the platform generated only $178 million from Bitcoin sales last year and merely $65 million in the first quarter of 2019.
“Bitcoin revenue for the three months ended March 31, 2020, increased by $240.6 million or 367%, compared to the three months ended March 31, 2019. The increase was due to growth in the number of active bitcoin customers, as well as growth in customer demand,” Square stated.
Meanwhile, Square is also gearing up to launch lending services after obtaining approval from the US Federal Deposit Insurance Corporation (FDIC). It will provide commercial loans to the merchants using Square and is aiming to launch services by the next year.