Bitcoin-Friendly Square Cash App Stock Price Up 56% In 2019 (#GotBitcoin?)
Cash App, they payments app of San Francisco-based payments company Square, announced a Bitcoin (BTC) giveaway in a tweet published on July 26 as its stock price continues to grow, according to MarketWatch. Bitcoin-Friendly Square Cash App Stock Price Up 56% In 2019 (#GotBitcoin?)
Giving Away Bitcoin
In its tweets, the official Cash App Twitter account announced that it will give away $50,000 in Bitcoin. In subsequent tweets, Cashapp also pointed out that the number of tweets grew first to 12,300, and then to 40,300.
As Cointelegraph reported at the end of June, Square already enabled Bitcoin deposits to all of its Cash App users. Notably, Square’s founder Jack Dorsey — who is also the creator of Twitter — has been putting together a team dedicated to improving crypto infrastructure in general.
Square Is A Growing Company
Furthermore, Square’s (SQ) stock is up about 56% in 2019, having started the year at $57.2 and trading at $81.8 at press time, according to MarketWatch data. Bitcoin, on the other hand, increased its value by about 157% over the same period, according to Coin360.
As Cointelegraph reported earlier today, the Chinese central bank released on its website an infographic illustrating what is Bitcoin, how it works, and why it’s valuable.
Square Doubles Bitcoin Revenue, Generating $125 Million via Cash App in Q2
Payments company Square has generated $125 million in Bitcoin (BTC) revenue in the second quarter of 2019 through its mobile payments service Cash App.
Square released the information in the company’s Q2 2019 shareholder letter on Aug. 1. According to the letter, the company’s Bitcoin revenue benefited in part from the number one cryptocurrency’s price rally over the quarter.
As a result of this price growth, there was also a correspondingly increased volume of Bitcoin, they say. This resulted in a $2 million gross profit for the company.
Cash App obtained $135 million in subscription-, services- and transaction-based revenue. This means that Bitcoin revenue granted the company over 92% of the quantity that Square obtained through subscription, services and transaction revenue alone.
In Square’s Q1 2019 report in May, the company revealed that it achieved a new revenue high from Bitcoin sales via Cash App, with a stated Bitcoin revenue of $65.5 million. This means Square has more than doubled its Bitcoin revenue compared to the preceding quarter.
Square: A Company Bullish On Bitcoin
As previously reported by Cointelegraph, Steve Lee, a project manager at Square’s crypto branch — Square Crypto — heavily emphasized the company’s belief in Bitcoin in an ask me anything session on Twitter. Lee wrote that the company was “very, very pro-Bitcoin.”
Square also recently released a Bitcoin deposits feature on Cash App in late June. This reportedly enables Bitcoin users to deposit their assets from external wallets into Square’s payments application. However, the announcement cautioned that there would be some limitations — a cap of $10,000 in Bitcoin per seven days, and a wait of up to several hours to confirm the deposits via blockchain.
Square’s Cash App Is Testing a Stock Trading Feature
Square’s cryptocurrency-friendly payment app Cash App is reportedly testing a new feature allowing customers to buy and sell stocks.
Expanding Cash App
Citing a source familiar with the matter, Bloomberg reported on Sept. 12 that the San Francisco-based startup’s employees began testing the new feature in recent weeks. Once released, it will allow Cash App users to make free stock trades.
Square has reportedly not yet determined the exact date of the new option launch.
Cash App And Crypto
Square made Bitcoin (BTC) deposits available on Cash App in late June. At the time, deposits were limited to $10,000 worth of Bitcoin in a seven day period, while transfers could take several hours to be confirmed on the blockchain.
In July, Cash App announced a giveaway of $50,000 worth of BTC following the continued growth of its stock price. At the time, Square’s stock was up about 56% in 2019, having started the year at $57.2 and trading at $81.8 at the time, according to MarketWatch data.
Bitcoin, On The Other Hand, Increased Its Value By About 157% Over The Same Period.
Jack Dorsey And Crypto
Also this summer, Square’s founder Jack Dorsey — who is also the creator of social media giant Twitter — was putting together a team dedicated to improving crypto infrastructure in general. Back then, Dorsey commented on the advantages for Square too, saying:
“Just from a business perspective, we don’t look like an Internet company today. An Internet company can launch something and it’s available around the world. Whereas with payments, you have to go to each market and pay attention to regulators. You need a partnership with a local bank. This is a very slow process in any new market.”
Square Crypto Grants $100,000 To Open-Source Crypto Payment Processor
Bitcoin (BTC)-supporting payments service Square Crypto is giving the first of what will be many grants to support open-source Bitcoin projects to BTCPay Foundation.
BTCPay Receives $100,000 Grant
On Sept. 14, Square Crypto, the crypto-focused branch of mobile payment company Square, took to Twitter to announce that it is providing BTCPay Foundation with a grant of $100,000 to support BTCPay Server, an open-source cryptocurrency payment processor.
BTCPay Server can allocate the funds to create anything, “as long as it’s free and open-source software that improves the security, scalability, privacy, user experience, or fungibility of Bitcoin — or all of the above.” The Square Crypto team added:
“BTCPay represents everything we love about open-source bitcoin projects. It exemplifies the ideals of our community and promotes adoption by letting merchants accept bitcoin, control their private keys, and self-validate their coins. It also creates powerful real world applications for bitcoin without sacrificing user experience or requiring trusted third parties.”
Square Crypto went on to explain why they are giving a “bunch of money” to BTCPay Server, a product that appears to be in direct competition with its own services. Square explained:
“Existing payments companies have a choice to make: adapt or be left behind. This isn’t an investment in a competitor, it’s an investment in the future of money — something that Square obviously has a stake in.”
Square And BTC Infrastructure
As Cointelegraph reported at the end of July, project manager at Square Crypto Steve Lee emphasized in a Twitter ask me anything that his team is particularly keen on developing support for the Bitcoin ecosystem. He added:
“We are very, very pro-Bitcoin. There is more than enough work for us to do there. That said, we are open to emerging use cases and technologies that complement Bitcoin.”
Bitcoin Buyers for Square’s Cash App Doubled in Q3 2019
According to its Q3 2019 shareholder letter, Square’s Cash App reported many new first-time Bitcoin (BTC) buyers, but low profits related to its Bitcoin business.
On Nov. 6, payment processing giant Square issued a letter to shareholders outlining Q3 2019 financial figures, in which it disclosed that the total net revenue for its Cash App was $307 million, while the gross profit resulted in $123 million for Q3.
First-time BTC Buyers Have Almost Doubled
Square’s Cash App saw $148 million in Bitcoin revenue. However, the company endured a whopping $146 million in Bitcoin costs during the third quarter of 2019, which resulted in only $2 million profit on Bitcoin sales during the same time period.
Despite the low profit margin on BTC sales, more and more users are apparently finding their way to the Square’s Cash App as a means to invest in Bitcoin. Ever since the company introduced the redesigned Cash App’s customer interface, product adoption of Bitcoin and Cash Card has increased significantly. The letter stated:
“First-time Bitcoin buyers have approximately doubled and Cash Card orders have seen a meaningful uplift.”
The shareholder letter further points out that in the third quarter of 2019, total net revenue grew 44% year-over-year to $1.27 billion, and adjusted revenue grew 40% year-over-year to $602 million.
Net income was $29 million in the Q3 2019, compared to a net income of $20 million in the Q3 2018.
The Cash App, Square’s popular payments app, was initially designed to facilitate the transfer of fiat currency but soon started supporting cryptocurrency trading.
Square’ Cash Card is a free business debit card that enables sellers to spend their funds as soon as they make a sale. When a seller takes a payment, the proceeds immediately go into their Square stored balance, which can then be spent or withdrawn from an ATM.
Buy A Fraction Of Berkshire Stock
Square App has continued to expand beyond its initial purpose as a payments app. Recently, Jack Dorsey, CEO of Twitter and Square, announced that Square’s Cash App is poised to enable users to purchase fractions of stocks — with an entry of as little as $1. Dorsey wrote:
“Now anyone can buy $42 or even $1 worth of Berkshire Hathaway A ($BRK.A, or $TSLA or $SFIX or…) instantly and for free right in @CashApp. Really proud of the team for making buying stocks and building wealth accessible to more people. Rolling out now!”
Dorsey also pointed out that users who are not into stocks can buy fractions of Bitcoin using the same interface.
Jack Dorsey’s Square Awarded Patent For Real-Time Crypto-To-Fiat Swaps
Financial services and mobile payment company Square thinks it has found a way to turn fiat into crypto in real-time point-of-sale transactions.
How It Works
On Jan. 21, the United States Patent Office awarded Square a patent for a technology that the team argues cracks a present barrier in merchant transactions:
“All cryptocurrencies face the same drawback in that they are not widely accepted. Presently, cryptocurrencies, like bitcoin, are not accepted by most retail merchants, or even by most online merchants.”
The team cited a number of drawbacks to current crypto spending. Transactions take a while to process. Minor advances still defy practical timeframes, like buying a hypothetical cup of coffee in a transaction that the blockchain could take hours to record.
The anonymity of cryptocurrencies exposes merchants to possible criminal activity, like money laundering. There’s also the purely money angle, as the fluctuation of crypto exchange rates poses a financial risk to business owners.
But let’s say a consumer purchases that cup of coffee. The technology would receive a request for payment in the consumer’s asset-of-choice — while using a privacy coin — and approve it for the merchant to get full value in their asset-of-choice, all in real-time.
Cointelegraph reached out to Square about the technology’s possible usage across point-of-sale devices, but a spokesperson declined to confirm a specific pending usage for the newly patented system.
On Jan. 21, Square announced on its blog the start of a Lightning Development Kit (LDK). Larger than a node, LDK would customize experiences for wallet and application developments, including an API, language bindings and demo apps. The shaky structure of Lightning as is, the blog argues, is just that — shaky. Improvements, however, would lead to low-fee Bitcoin payments “as common as cash used to be.”
Square Lowers Its Q1 Estimates by $800M Despite Bitcoin Success
Square’s Bitcoin (BTC) revenue continues to grow, even as the popular payments app lowers its first-quarter revenue estimates by $800 million due to the coronavirus crisis.
According to a company announcement on March 24, COVID-19 was not a factor in the company’s growth until around 10 days ago:
“While the beginning of March was relatively in line with the company’s expectations, over the trailing ten-day period Seller GPV [gross processing volume] has declined by approximately 25% year over year, with greater declines in recent days.”
This resulted in Square revising its first-quarter total net revenue from an estimate of $1.3–1.344 billion to the $515–$525 million range. The company was also forced to withdraw its full-year 2020 guidance, and “expects to provide a further update on its first-quarter 2020 earnings call in May.”
Square’s CashApp supports Bitcoin transactions and generates significant revenue for the company. In the fourth quarter of 2019 alone, the service generated $178 million.
Despite the company’s struggles and the latest economic downturn, CashApp has seen increased adoption and investments in Bitcoin, according to the company’s spokesperson. Meanwhile, Square’s stock was up 15.75% on the day.
The company’s updated revenue outlook seems to support the idea that as the global economic panic deepens, more investors may seek shelter in Bitcoin.
Bitcoin Trading Generated $875M In Quarterly Revenue For Square
Bitcoin trading drove $875 million in quarterly revenue for the U.S-based financial services firm Square, comprising a 75% gain over Q1 2020.
Jack Dorsey’s financial services company Square, Inc. has published its second-quarter financials for 2020, revealing $875 million in revenue from Bitcoin (BTC) trading on its Cash App product.
With Cash App’s Bitcoin business incurring $858 million in quarterly expenses, Square’s BTC services generated $17 million in gross profit, with extreme market volatility and hype for Bitcoin’s block reward halving driving customer demand.
Cash App now has 30 million active monthly users.
Cash App’s Bitcoin Profits Up 75% Since Q1
The quarterly performance comprised a 600% increase in revenue and a 710% gain in gross profit year-over-year, and a 150% increase in gross profit compared to the first quarter of 2020.
Bitcoin-related business represented roughly 2.85% of Square’s total gross profit of $597 million for the quarter.
However, the report notes that “government stimulus programs” likely contributed to the uplift in Bitcoin investment activity.
Square Hastily Publishes Quarterly Report
The Twitter account of Square’s Investor Relations wing published the data in response to “early external access of the company’s quarterly financials.” The company will host a conference call on Aug. 5 at 8 a.m. EST to discuss the results.
Square’s quarterly total net revenue was $1.92 billion — 75% above recent forecasts, and a 64% gain year-over-year.
The report has bolstered a strong recent performance for the company’s share price, which has gained more than 9% over the past five days.
Almost 80% of Square’s Cash App Q3 Revenue Was From Bitcoin
Square’s Cash App has increased Q3 Bitcoin revenue by 1,100% after more than $1.6 billion Bitcoin was purchased by users.
Cash App, the Bitcoin-friendly mobile payments app from U.S. financial services firm Square, has reported Bitcoin (BTC) has overtaken all other revenue sources, making up almost 80% of its entire revenue in the third quarter.
In Square’s third-quarter report, Cash App’s Bitcoin-derived revenue of $1.63 billion in Bitcoin marked a massive increase of more than 1,100% when compared to the same period in 2019.
Bitcoin revenue was by far the largest component of Cash App’s overall revenue generation of $2 billion, with all other revenue streams totaling $453 million, or 22% of the total.
Cash App functions as a broker for Bitcoin purchases, buying it on behalf of the user, and adding a small fee.
The report notes that some of the increased Bitcoin sales were due to the app’s Auto-Invest tool, launched in May this year, which allows users to recurring daily or weekly purchases of stock or BTC.
Bitcoin revenue produced $32 million in gross profit for the third quarter, an increase of 15 times from the previous year’s profit of $2.1 million in the same period.
Square’s total Q3 revenue was more than $3 billion, up 140% from 2019 — of which Bitcoin comprised more than 50%. The total Bitcoin revenue for all of 2019 was $338 million with a gross profit of $5 million.
Hours after the report was released, Square’s share price rose 6% during after-hours trading to sit at $184, eyeing off the previous all-time high of $190 earlier this month. At the same time, Bitcoin rose by a similar amount to hit a two-year high of $15,880.
In the report Square also noted its $50 million Bitcoin (4,709 BTC) investment as a treasury asset, which is now worth $74.8 million. The company’s purchase was based on the belief that “cryptocurrencies are an instrument of economic empowerment and align with the company’s purpose,” adding:
“We expect to hold this investment for the long term.”
Despite Square’s large investment, the company ranks seventh in terms of publicly trading company’s Bitcoin holdings.
Square’s Earnings 2.5X Expectations, Bitcoin Revenue Up 1000% In 12 Months
Square’s quarterly earnings beat out expectations by more than double thanks to Bitcoin’s dramatic rally.
U.S.-based financial services firm, Square Inc, reports that its quarterly earnings doubled analyst expectations amid booming demand for crypto assets.
Global financial data provider Refinitiv had predicted Square would see earnings of 16 cents per share in Q1 2021, but the firm ended up earning 41 cents per share. Square saw $5.06 billion in revenue, dwarfing Refinitiv’s prediction of $3.36 billion.
Bitcoin alone drove $3.5 billion in revenue, an astonishing increase of 1,000% in just 12 months.
Square’s quarterly gross profit also surged 79% year-over-year to tag $964 million. More than half of the firm’s profits can be attributed to its crypto-friendly payment application, Cash App, which drove $495 million in gross profits — a 171% increase when compared to Q1 2020.
While Bitcoin turnover was in the billions, the cryptocurrency represented 2% of the firm’s total gross profit with $75 million.
“Bitcoin revenue and gross profit benefited from a year-over-year increase in the price of Bitcoin, Bitcoin activities, and growth in customer demand,” noted the firm.
During an earnings call, Square CEO, Jack Dorsey, emphasized the firm’s mission of supporting BTC to become the native currency of the internet, stating:
“Our focus, first and foremost, is on enabling […] Bitcoin to be the native currency. It removes a bunch of friction for our business. And we believe fully that it creates more opportunities for economic empowerment around the world.”
Despite predicting Cash App will continue to see triple-figure growth year-over-year in 2021, Square’s CFO, Amrita Ahuja, noted that government stimulus likely bolstered the recent performance of its payments application.
“We believe our customers had greater spending power from government funds, which drove an uplift in inflows in March,” he said, adding: “We have since seen a normalization with inflows down 16% in April, compared to March.”
Square became one of the first firms to invest a portion of its treasury into Bitcoin when the firm purchased 4,709 BTC for $50 million in October.
While the company’s first BTC buy is now worth $263.7 million, the firm is down $20 million on a further 3,318 BTC it bought in February for $170 million. The firm currently holds $472 million worth of BTC in total.
Cash App’s Quarterly Bitcoin Revenue Triples Despite BTC Impairment Loss For Square
Jack Dorsey’s Square made more than 90% more gross profit than the same period last year, with $546 million coming from Cash App’s Bitcoin services.
Jack Dorsey’s Square has reported a 200% increase in Bitcoin (BTC) revenue for the second quarter year-on-year (YoY).
The company announced the impressive earnings figures in its second-quarter shareholder letter on Sunday. In the report, Square revealed its total gross profit grew 91% YoY to $1.14 billion.
Bitcoin services drove $2.72 billion in revenue for the app, with a gross profit of $55 million and respective increases of 210% and 223%, respectively, year-on-year. Cash App generated a gross profit of $546 million overall, up 94% YoY.
“Bitcoin revenue and gross profit benefited from year-over-year increases in the price of bitcoin and bitcoin activities, and growth in customer demand.”
However, compared to the first quarter of this year, Bitcoin revenue and gross profit decreased and are down 22.3% from 3.5 billion.
Square attributed the weaker performance to the more than 50% retracement suffered by the broader crypto markets during May and June.
Square also reported an impairment loss of $45 million on the Bitcoin it holds. As Tesla holds its Bitcoin as an “intangible asset,” accounting rules require the firm to report an impairment loss when the asset’s price drops below its cost basis. Square is also not required to report increases in the value of its intangible asset holdings until the position is realized through a sale.
According to Bitcoin Treasuries, Square currently holds 8,027 BTC worth an estimated $320 million at the time of writing.
Square recently bought 3,318 BTC in February for $170 million, adding to its initial purchase of 4,709 BTC in October 2020.
On Friday, Cointelegraph reported that mobile software firm MicroStrategy pledged to buy more BTC despite an impairment loss of $425 million on its Bitcoin stash for Q2. Tesla also reported an impairment loss of $23 million for the quarter
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