Square’s Cash App Doubles Its Bitcoin-Generated Revenues
Square, Inc., a U.S. financial services and mobile payment company, reported its 2019 second-quarter earnings, beating the market’s expectations. The company’s total net revenue for the second quarter grew 44% from one year ago. One of the revenue areas contributing to Square’s results was Bitcoin.
Cash App Has “Millions of Engaged Customers”
According to the company’s earnings report, adjusted revenue increased to $562.8 million during the quarter ending June 30, 2019. A year ago, the company reported revenues of $385.4 million.
A company letter announcing the financial results highlighted that the mobile payment service Cash App has “millions of engaged customers.” It also pointed to Cash App as one of the key drivers for the strong revenue growth.
Indeed, Cash App has grown considerably over in recent years. It generates revenue from six separate sources, which Square details as follows:
1. Instant Deposit
2. Cash Card
3. Business Accounts
4. P2P transactions funded with a credit card
6. Interest on customers’ stored balances
The letter highlights Cash App’s success,
In three years, total net revenue from Cash App increased from approximately $1 million in the second quarter of 2016 to $135 million, excluding BTC, in the second quarter of 2019.
Bitcoin-Generated Revenue Was $125 Million
Regarding revenues generated by Bitcoin, the letter notes that of the total revenue of $135 million, which includes subscription and services-based revenue as well as transaction-based, $125 million was Bitcoin-generated revenue.
The letter specifies,
During the quarter, Bitcoin revenue benefited from increased volume as a result of the increase in the price of Bitcoin, and generated $2 million of gross profit.
In 2018, Square enhanced Cash App to facilitate Bitcoin trading. In this regard, Twitter and Square CEO Jack Dorsey obtained a New York BitLicense on June 18, 2018. The BitLicense allows Square to offer Bitcoin trading services in New York via its Cash app.
Square’s CEO is a Bitcoin visionary. In 2018, according to The Times, Jack Dorsey predicted,
“Bitcoin will overtake the dollar in importance as it becomes the single global currency of the internet within a decade.”
What do you think about the peer-to-peer and Bitcoin payment services offered by Square’s Cash App? Let us know in the comments below.
Images via Square Inc. , Shutterstock