During the first quarter of 2020, Square’s Cash App received $528 million in profits. This is seen from the ‘Q1 2020 Letter to Shareholders’. Twitter CEO and founder of Square, Jack Dorsey says revenue includes both Bitcoin and the fiat payments fees. What’s interesting, Bitcoin brought in $306 million, which is more than what actual cash gave. This also means that people use Bitcoin more, adding positive numbers to the adoption metrics.
The popular Cash App by Jack Dorsey shows that he has profound business talent. Square received $7 million in pure profits from selling, storing, and buying Bitcoin. The company is receiving it via Cash App’s fee collection. The $7 million in pure Bitcoin profits are much better than $9 million Square made on Bitcoin through the whole of 2019. The creators of Cash App claim that they only deduct a small fee off the actual Bitcoin price:
“We deduct bitcoin revenue because our role is to facilitate customers’ access to bitcoin. 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. In the first quarter, Cash App gross profit grew 115% year over year.”
Square plans to receive a license from the U.S. Federal Deposit Insurance Corporation (FDIC) that will enable the firm to provide commercial loans to merchants. The lending program could start at the beginning of 2021.
Profits From Bitcoin Kept Rising During 2019
Compared to the $306 million in BTC revenue in Q1 2020, the Q1 2019 looks ludicrous with its $65 million revenue mark. The U.S. based company aims at the mobile payments market. Per the financial report from Wednesday, more users avoid classic financial tools:
“Bitcoin revenue for the three months ended March 31, 2020, increased by $240.6 million or 367%, compared to the three months ended March 31, 2019. The increase was due to growth in the number of active bitcoin customers, as well as growth in customer demand.”