US-based mobile payment company Square revealed that it has recorded a new high with its Bitcoin sales on its Cash App.
The unaudited quarterly report of Square showed that the company registered a Bitcoin revenue of $65.5 million. However, the company spent $64.7 million to purchase the digital currency in the same period, which narrowed the quarterly profits to roughly $832,000.
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If BTC sales on Square Cash maintain current growth rates, then by the next Bitcoin halving (May 2020), roughly 2 BTC will be purchased on Square Cash for every new BTC that is mined. pic.twitter.com/GPxXhaGK15
— Yassine Elmandjra (@yassineARK) May 1, 2019
Revenue generated from Bitcoin sales makes only a fraction of the total net revenue of the company which is amounting to $959 million – 43 percent year-over-year increase.
“Cash App volume grew nearly 2.5x year over year, reflecting the growing network effects, reach, and engagement of this ecosystem,” the payment company noted.
Solid quarterly results
Square is publishing impressive figures in every quarter. In Q4 2018, the company recorded total net revenue of $933 million and, similar to this quarter, Bitcoin revenue only captured $52 million. With $51.9 million in Bitcoin costs, the company then registered a profit of $490,000.
A previous financial report published earlier this year showed that the company generated $116 million in revenue by selling Bitcoins through its Cash App in 2018. That constituted only five percent of the total revenue of $3.3 billion.
Launched as a mobile-based payment platform, Square extended its support towards cryptocurrency trading in November 2017 by the launch of its peer-to-peer Cash app. The platform had more than 15 million active customers in December 2018, doubling from a year earlier. The company is headed by Twitter’s founder and CEO Jack Dorsey.
Square is one of the few crypto-businesses in the United States to receive the controversial BitLicense from the New York state regulators. The company has now expanded in every state of the country to offer its Bitcoin trading services.