Square's Cash App Reports BTC Quarterly Revenue Exceeds Fiat's, Soaring 367% to $306 Million – Bitcoin News


Square's Cash App Reports BTC Quarterly Revenue Exceeds Fiat's, Soaring 367% to $306 Million

Square’s Cash App reported Wednesday, that bitcoin (BTC) revenue during the first quarter of the year, soared 367% to $306 million from $65 million a year ago. Quarter-on-quarter, the figure is up 71%.

The increase is thanks “to growth in the number of active bitcoin customers, as well as growth in customer demand as a result of the decrease in the price of BTC,” Square said.

It is the first time that BTC revenue has exceeded fiat revenue at the online payments company. For the three months to March 31, 2020, Cash App fiat revenue amounted to $222 million, bringing total sectoral revenue to $528 million.

At $7 million, bitcoin-related profit accounted for just 3.8% of Cash App gross profit of $183 million. That compares with $8 million earned for the whole of 2019.

Square said total revenue for the three months climbed 44% to $1.38 billion from a year earlier. Net quarterly loss expanded to $106 million from $38 million last year.

The company reported a net income of $391 million in the fourth quarter of 2019, helped by a $373 million gain from the sale of subsidiary Caviar.

Covid-19 helped to drive online transactions. In April, said Square, as Cash App recorded its “highest monthly totals for net-new transacting active customers, peer-to-peer volumes …direct deposit transacting active customers and bitcoin volumes…” Direct deposits, for example, grew 3x compared to March.

Going forward, Square indicated that it will focus on customer acquisition and product velocity for it’s Cash App. According to the earnings report:

We see significant opportunity to invest in acquiring new customers, driven by peer-to-peer payments as well as creative marketing strategies. We intend to continue to identify opportunities to launch new products and expand the ways that Cash App can help customers manage their money.

Cash App allows users to transfer funds between the U.S. and U.K. with no fees, as well as to buy bitcoin.

At the time of writing, shares of Square are up 6.15% at $72.39 in morning trade at the New York Stock Exchange. Over the past 52 weeks, the stock has reached a high of $87.25 and a low of $32.33.

Tags in this story
Bitcoin, Bitcoin revenue, BTC, Cash App, COVID-19, money transfer, New York Stock Exchange, Square

What do you think about the Cash App’s bitcoin revenue growth? Let us know in the comments section below.

Jeffrey Gogo

Jeffrey Gogo is an award winning financial journalist based in Harare, Zimbabwe. A former deputy business editor with the Zimbabwe Herald, the country's biggest daily, Gogo has more than 17 years of wide-ranging experience covering Zimbabwe's financial markets, economy and company news. He first encountered bitcoin in 2014, and began covering cryptocurrency markets in 2017

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer
Show comments