Bitcoin Boosting Square Earnings

Since Square, Inc. added Bitcoin trading capabilities to its payment app, the value of its stocks has increased spectacularly. Dan Dolev, an analyst at Nomura Instinet, believes this ascending trajectory will most likely continue. As a result, Nomura Instinet raised its Square target price to $65 USD.

Bitcoin Makes Square Profitable

Dan Dolev predicts a “sizable boost” to Square’s revenues and profits in the first quarter, thanks to Square having added Bitcoin trading features on its payment app.

Dolev estimates that Square could generate $125 a year in revenue from each user who trades Bitcoin on the Square Cash app. CNBC reports:

That move could drive a ‘sizable boost’ to the tech company’s revenue and profits this quarter and a 10 percent potential upside to adjusted EBITDA guidance.

Square’s stock performance (SQ) has been impressive. Indeed, its stock value has increased over 180 percent in past 12 months, as shown in the chart below:

Square acquiesced to its clients’ demand by providing Bitcoin trading capabilities to its Cash App. In this regard, the company says:

Customers can now buy and sell Bitcoin in Cash App. We observed that this was a feature our customers wanted, and we support Bitcoin because we see it as a step in the long-term path toward greater financial access for all.

Bitcoin Will Be the Single Currency in the World

Jack Dorsey is the CEO of both Square and Twitter. He has remained faithful to his vision that the world will eventually have only one currency, Bitcoin. According to The Times, Jack Dorsey declared:

Bitcoin will overtake the dollar in importance as it becomes the single global currency of the internet within a decade.

Indeed, the company has been successfully using Bitcoin to gain a competitive advantage over its competitors in their relentless war for supremacy in the mobile payment industry space.

Specifically, Square’s stock price surpasses by far its peers in the digital payment industry, such as Paypal, WorldPay Inc., Global Payments Inc., and First Data Corporation, as shown in the chart below:

It appears that the financial markets are finally starting to treat Bitcoin with the seriousness it deserves as stock values reached by Bitcoin-friendly companies, such as Nvidia and Square continue to impress the markets.

What do you think about mobile payment companies providing peer-to-peer and Bitcoin payment services? Let us know in the comments below.

Images courtesy of Shutterstock, Square