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