Square is Absorbing More than 10% of All Bitcoin Mining Supply on a Daily Basis
Payment company Square has reported a record quarter, revealing strong growth in Bitcoin sales through its Cash app.
Founded by Twitter co-founder Jack Dorsey, Square reported its first-quarter earnings of 2019 at $65.5 million in Bitcoin revenue. In the unaudited quarterly report, however, Bitcoin costs are listed at $64.7 million, for a profit of about $832,000.
Square customers bought $65.5 million of Bitcoin last quarter on Cash App.
That’s 4 straight quarters of *accelerating* revenue growth for Square's Bitcoin business, and 92% growth YoY.
TO THE MOON 🚀 pic.twitter.com/i6mg7BekAf
— Kevin Rooke (@kerooke) May 1, 2019
The latest figures by Square top previous all-time highs for the company. Last year, the fourth quarter saw $52.4 million in Bitcoin revenue and $490,000 in profit.
This time the revenue from Bitcoin increased $13.1 billion while profit saw an increase of nearly 70 percent over the previous quarter.
In the entire year of 2018, the company reported a total of $166 million in bitcoin sales.
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
Despite recording only $166 million in Bitcoin sales last year, Bitcoin remains a niche product for the company. According to the report, the transaction based revenue in quarter first topped $656 million.
— Ben Davenport (@bendavenport) May 1, 2019
The company sells Bitcoin to users through its Cash app, a mobile payment service developed by Square that allows transferring funds using a mobile payment app. As of mid-February, the service recorded 7 million active users that expanded its Bitcoin services to all 50 US stated in August 2018.
The peer-to-peer platform has been also the primary driver of the company's 97 percent year-over-year growth in services and subscription-based revenue. For the entire year, the company has raised its full-year revenue outlook.
“Given the significant market opportunity ahead of us, we will continue to be purposeful as we reinvest in our business to drive long-term growth,”
said Square about its outlook.