Square – a company owned and operated by Twitter mogul Jack Dorsey – says that approximately 80 percent of its quarter three Cash App revenue came from bitcoin and related crypto transactions.
Square Is Making A Huge Mark on Crypto Enthusiasts Everywhere
Square has been making a serious mark in the crypto world as of late given that it recently bought as much as $50 million worth of the digital currency, continuing a trend that was originally started by the likes of enterprises like MicroStrategy. At the time, the latter firm had purchased more than $400 million in BTC, and its CEO Michael Saylor had been commenting that bitcoin was far less risky than cash or traditional assets.
However, things could have ended there. Square later stepped up and bought enough bitcoin to boost the institutional presence in the crypto space even further. Bill Noble – chief technical analyst at Token Metrics – has stated that companies are entering a phase now where they are fully convinced that bitcoin needs to be part of their portfolios, and should they fail in this endeavor, they will likely suffer financially in the future.
He stated in a recent interview:
You’re not going to be able to go to a holiday party as a CFO if you don’t have bitcoin.
Square is reporting that it generated more than $1.6 billion from bitcoin and it raked in more than $32 million in crypto-related profits thanks to the business attracted during the third quarter of 2020. That’s about a 140 percent spike in overall profit for the company from one year to the next.
Square released the following statement:
When customers buy bitcoin through Cash App, we only apply a small margin to the market cost of bitcoin, which tends to be volatile and outside our control. Therefore, we believe deducting bitcoin revenue better reflects the economic benefits as well as our performance from these transactions.
The specific details of Square’s overall bitcoin-related activity throughout the previous 2020 quarters are as follows: overall, the company sold about $875 million worth of the digital asset during the second quarter and garnered as much as $17 million in total profit, suggesting just how much has changed from one quarter to the next. In addition, for the entire year of 2019, Square sold a meager $516 million in bitcoin, meaning 2020 has been the company’s biggest period to date.
Still a Lot of Room for Improvement, but Things Are Coming Along
For the most part, the company still isn’t making a ton of money by selling bitcoin or generating bitcoin transactions, though the numbers are growing, which tells us that the asset is stretching further into mainstream territory.
At press time, bitcoin has jumped up by about $300 over the past 24 hours and is currently trading for just over $15,400.