Square Cash App Payments Network Trades Over $34 Million in Bitcoin So Far
Square Cash, a trading network for companies, has published its business reports recently. The reports state that the company has pulled $34 million USD in Bitcoin so far. The numbers could look great for the casual viewer, but the fact is that Square Cash spent nearly as much Bitcoin to run its operations.
Square Cash’s Bitcoin Revenue Is Unprofitable
If you look at the report, you will see that it spent $33,872,000 USD in Bitcoin and it gained only $34,095,000 USD. This is highly unprofitable for the company, especially when you compare it to other costs and revenues like the transaction-based ones, which cost 327,911,000 USD and it made a revenue of $523,037,000 USD, almost $200 million in profit.
While Bitcoin accounts for almost 5% of the revenue of the company, you can clearly see how it struggled to make a profit. The math is simple: the other services are simply more profitable because the return on investment of using Bitcoin is only 0.66%. You could get more money if you put it in a savings account for four months.
The fact that the price of Bitcoin is smaller now than it was when the company bought it is also an indication that the company might have even lost money. The price of Bitcoin has fallen more than 50% since last year.
The company, which is more known for helping small merchants to accept credit cards, started to use Bitcoin in January after a brief test program, but the result may raise doubts about the viability of this enterprise.