Square handled bitcoin sales of $ 148 million in the third quarter of 2019.

The payment company, founded by Twitter co-founder Jack Dorsey, released its financial results on Wednesday, reporting $ 1.27 billion in revenue between July 1 and September 30 this year.

Although Square's cryptography business remains a niche concern for the publicly traded company, more and more users are turning to Square's Cash Application as a gateway to investing in Bitcoin, especially after the company has deployed a new user interface for the application.

"New buyers of bitcoin have almost doubled," an investor letter published on Wednesday read.

Square's bitcoin revenue represents an increase of 244% over the previous year, after generating only $ 43 million in revenue. during the third quarter of 2018. However, the company recorded bitcoin costs of $ 146 million in the last quarter, generating a profit of only $ 2 million for the second consecutive quarter.

Cash App as a whole generated a turnover of $ 307 million in the third quarter.

In its forecast for the fourth quarter, Square predicts that bitcoin and transaction costs will be in the range of $ 575 to $ 585 million. The letter added:

"We are increasing the upper limit of our net revenue forecast for fiscal year 2019 by $ 110 million, because of the underlying trends in our sales and payment applications business. , as well as the outperformance in bitcoins in the third quarter.

Square has been selling bitcoins to consumers since November 2017, after adding a purchase option in its Cash application. The company has grown rapidly thanks to this feature, generating $ 125 million in bitcoin revenue the last quarter, double the revenue generated in the first quarter of 2019.

Despite a slight increase in usage, Square struggled to generate substantial profits from bitcoin, which reported only $ 832,000 in the first quarter and about $ 2 million in the second and third quarters.

Perhaps in response to this, the Cash App has recently introduced a new fee structure for purchases in bitcoins.

Nevertheless, year after year, Square has rapidly increased the amount of bitcoins sold, generating revenues of $ 34 million in the first quarter of 2018 and $ 37 million in the second quarter.

The company has also created a Crypto Square the team to finance the development of the Bitcoin protocol outside the commercial concerns of Cash App.

Image Jack Dorsey via the CoinDesk Archive


Join the Binance global trading platform

Leave a Reply

Your email address will not be published. Required fields are marked *