Bitcoin Generates $510 Million in Revenue in 2019 for Square while Recording Growth in Every Single Quarter

Must Read

Can XRP defend its price?

Could XRP defend its price action, and rise back to $0.30? Here is my view on how...

With a 110% increase in crypto wallet adoption rates in 2020 are we set for another Bitcoin boom?

2020 has been a massive year for crypto adoption. In July alone, over 3.5 million crypto wallet app downloads...

DeepTradeBot: The innovation of large companies at your service

DeepTradeBot is a collection of automated trading tools developed by Deep Neuro Networks LTD, a London, England-based company...
- Advertisement -BTCClicks.com Banner
Earn Free Bitcoin

In the fourth quarter of 2019, customers bought $178 million in Bitcoin from Square’ Cash app.

According to the financial report of the quarter four of Square, the payments company founded by Twitter CEO Jack Dorsey, the peer-to-peer payments and stock trading Cash App generated $361 million in revenue. Half of the Cash app’s 4Q19 earnings, however, came from bitcoin trading.

Overall in 2019, the cryptocurrency brought in $510 million in revenue to Square. The company first rolled out its bitcoin services on its Cash App across the US in the summer of 2018. Then in mid-2019, Square started allowing its customers to deposit bitcoin.

Square’s Chief Financial Officer Amrita Ahuja said on Wednesday’s investor call that its customers that are involved in bitcoin buying and selling tend to generate two or three times the revenue generated by its regular users.

“We are able to efficiently acquire customers, keep them engaged and show them additional ways we can continue to add value,” said Ahuja.

Now, for the first quarter of 2020, Square is projecting up to $715 million in transaction and bitcoin costs amidst the coronavirus scare. This has been unlike its competitor PayPal which has cut down its quarter first revenue growth by one percent like many other industry giants. This could very well be because nearly 90% of Square’s revenue was generated inside the United States.

Growth Despite Bitcoin Performance

Interestingly, Square’s Cash app recorded growth in bitcoin sales in every single quarter. The company registered 239% of year-over-year growth, marking the 7th straight quarter of growth.

What’s even more notable is that this increment has been seen notwithstanding the performance of bitcoin which lost 84% of its value in 2018 but surged 88% in 2019.

Bitcoin is an integral part of the company given that it contributed to half of its revenue. Also, Bitcoin proponent Dorsey believes Bitcoin will become the currency of the Internet one day and launched Square Crypto that announced a Lightning Network development kit last month.

Overall, the company exceeded the expectations of the market analysts by bringing in over $1.3 billion in revenue. With this solid 41% YoY increase in revenue, Square shares soared 10%.

Additionally, the company reached 24 million active users in the three months ending Dec. 2019, an increase of 60% versus 2018.

- Advertisement -
- Advertisement -

Latest News

Wyoming Amends Insurance Code to Allow Insurance Companies to Invest in Bitcoin & other Cryptos

In the first provision of its kind, Wyoming is allowing the domestic insurers to invest...
- Advertisement -Earn Free Bitcoin

Flyp.me Instant Crypto Exchange Now Supports REN Token Trading

Decentralized finance is leading the way of the cryptocurrency industry, with the REN Protocol at the front. REN Protocol is...

BLOCKCHAIN OVERCOMES POSSIBILITY OF FRAUD, LACK OF TRANSPARENCY AND TRUST IN THE GAMBLING INDUSTRY

DATE: 07/08/2020 In a recent study carried out by the UK Gambling Commission reveals that the gambling industry has...

The Kuailian Ecosystem, Bringing Blockchain Technology To The World

10 years have passed since the birth of Bitcoin and the first use of Blockchain, a technology that has not stopped evolving,...

Its’ Finally Here A 100% Local Non-Custodial P2P Cryptocurrency Marketplace.

Finfreeotc is soon launching a one of a kind peer to peer cryptocurrency market place. Their marketplace is 100% non-custodial,...