Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Square has just published its quarterly report for the second quarter of 2019. The report shows that the company generated $125 million in Bitcoin sales through its Cash App.
The Square financial services and payment company has just announced its second-quarter report for 2019. According to the report, Square’s Cash App pulled in $125 million in revenue from Bitcoin sales alone.
The report, dated August 1, details all of Square’s activity for the second quarter, specifically mentioning that Cash App pulled in the $125 million figure from Bitcoin alone, making up almost half of the app’s total $260 million revenue for the quarter. The report indicates that the surge was recorded mostly as a result of the Bitcoin price rally that excited the cryptosphere, beginning in April. This increase also surged the company’s transacted volume, reaching a $2 million recorded gross profit from Square.
Comparison with Earlier Figures
In comparison, Square’s Cash App pulled in $65.5 million from Bitcoin transactions in the first quarter, with an $832,000 profit. This means that the Q2 figure is a significant improvement over the Q1 report published in May. The improvement is highlighted better when it is considered that Square’s Bitcoin sales figure for the entire 2018 was $166 million. This directly means that Square’s 2019 first half has already outdone its entire 2018 figure by at least $23 million.
However, even with this increase, Bitcoin is still not the biggest part of Square’s core business. Its entire second-quarter earnings surged higher than $775 million which is more than six times the figure from Bitcoin sales alone.
Square is Pro-Bitcoin
Led by Jack Dorsey who is also the co-founder of Twitter, Square has shown a significant interest in Bitcoin especially with the launch of its Square Crypto, a division that is mainly focused on Bitcoin and cryptocurrency. A few days ago, during an Ask Me Anything session on Twitter, the Square Crypto Project Manager made a few comments expressing the company’s desire to enhance adoption and “strengthen the bitcoin ecosystem.” Steve Lee wrote at the time:
“Our goal is Bitcoin for all. We are focusing on improving the Bitcoin experience for mainstream users. The user journey will always be central to our thinking.”
Lee also expressed Square’s desire and interest in other virtual currencies and not just Bitcoin. When a user suggested “Square Bitcoin” as opposed to its “Square Crypto”, Lee responded saying:
“We are very, very pro-Bitcoin. There is more than enough work for us to do there. That said, we are open to emerging use cases and technologies that complement Bitcoin.”
Wall Street Isn’t Excited
While Square is probably jubilant about its recent figures, its stock has fallen by more than 6 percent, leaving Wall Street somewhat disenchanted. Square has however already announced that Caviar, its food delivery arm, will be passed on to DoorDash for $410 million, allowing the company more time and resources on its core business. According to CEO Dorsey:
“This transaction allows us to increase our focus on investment in our two large, growing ecosystems – one for businesses and one for individuals.”