Square’s Cash App is now profitable, thanks to Bitcoin. According to the fintech company’s reported earnings for first quarter (Q1) of 2020, Bitcoin brings in an uneven amount of money to the company’s peer-to-peer app than traditional fiat currency.
The report, released on Wednesday by the publicly traded firm listed Cash App revenue of $528 million for Q1. Out of the amount, $306 million are from Bitcoin transactions. That means BTC brought in $84 million more than the entire Cash App fiat revenue of $222 million.
In a shareholder letter released to the public, Square outline that:
“In the first quarter, Cash App gross profit grew 115% year over year.”
Furthermore, the report states that $178 million of the $222 million fiat revenue is pure profit. Meanwhile, Bitcoin generated $7 million in profit for the company out of $306 million in BTC transactions.
Q1 of 2020 is the most profitable for Cash App since is release. BTC’s profit accounted for only $8 million for the entire year of 2019. It looks as if Cash App’s Bitcoin business is on the verge of generating more than $32 million in 2020 if the pace can sustain.
The payment processing firm noted, in a filing with the United States Securities and Exchange Commission (SEC), that:
“Bitcoin revenue for the three months ended March 31, 2020 increased by $240.6 million or 367%, compared to the three months ended March 31, 2019. The increase was due to growth in the number of active bitcoin customers, as well as growth in customer demand.”
Square’s total revenue the first quarter (Q1) is $1.38 billion. That’s up 43% from last year’s Q1 revenue. $535 million reported as gross profit, but the company claimed a net loss of $105 million.
Mathieu is a Information technology professional with over 15 years of experience. He started one of the first bitcoin blogs existed in 2010. He started writing about, investing in bitcoin and promoting the first cryptocurrency when only a few technological savvy people knew about it. Mathieu is a world traveler who enjoys culture, technology, finance, salmon, rice and beans. He’s cool, collected and knows a great deal about blockchain technology.