Coinspeaker
Square Bitcoin Business Grows Sixfold Year-on-Year Basis

Square, a San Francisco-based payments company, reported its Q2 2020 results with its Bitcoin business having grown immensely. According to its report, revenue collected from its Bitcoin sale via Cash App to its customers in the second quarter was $875 million.

This was six times the figures reported the same time last year, hence indicating a tremendous increase in its Bitcoin sale business.

This can largely be attributed to increased cryptocurrency awareness and adoption globally. With all the benefits that cryptocurrency comes to solve in the traditional banking system, consumers cannot avoid luring technology.

According to the report, the company made a profit of $17 million in the second quarter, reciprocating to 711% year on year. This is even after charging a very small margin fee in the Bitcoin trading business.

In the second quarter of 2020, the company reported gross profit of $597 million, up 28% year over year. In addition, Cash App delivered strong growth, with gross profit up 167% year over year to $281 million.

Notably, its gross net revenue has been rising significantly since the second quarter of last year, whereby it has come from hitting $1.17 billion to $1.92 billion.

As of last month, Square’s Cash App had more than 30 million monthly transacting active customers, whereby more than 7 million of them were spending on Cash Card. With the active customers flocking into the company, precisely into its Bitcoin trading services, it is anticipated that its revenue will spike in the coming quarters.

In addition, its revenue will be bolstered by the rising tide as markets prepare to fully reopen for business after COVID-19 pandemic.

Nonetheless, due to its diversification in business and its well-set customer services, the company is poised to compete with other payment platforms like Venmo and PayPal.

With crypto adoption likely to be the major fuel in the anticipated rally, the company might largely financially benefit if it offers cutting-edge services in comparison to its competitors. However, no guarantees as the competition is high especially in the crypto payment industry.

During the Bitcoin services launch in Cash App, Square spokespersons said:

“We’re always listening to our customers and we’ve found that they are interested in using the Cash App to buy Bitcoin. We’re exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash App customers. We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we’re excited to learn more here.”

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Square Bitcoin Business Grows Sixfold Year-on-Year Basis

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