Square Inc., an American financial service provider company based out of San Francisco, California has reported a gradual increase in their revenue of 600% in Quarter 2 from their Bitcoin business, which has seen a remarkable growth as compared to previous years.
Square Inc. reported that the revenue has remarkably displayed an increasing trend at 600% year on year with the Bitcoin sales.
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- As per an announcement made on Tuesday, August 4th, 2020, “Square Inc.” the San Francisco based mobile payments organization mentioned that they made about $875 million in total revenue by selling bitcoins which were sold to their Cash App customers and made more than 6 times of the revenue made last year in 2019 around the same time period.
- A quarter 2 of 2020, resulted in a profit of $17 million, even they only have a very small margin while selling the bitcoins. However, Square wanted the investors to know the fact that they made about $711% year on year considering Q2.
- Well, this was quite ahead of the scheduled announcement by Square, especially, after someone gaining an early external access, however, not much information about the incident has been revealed.
- Square has undoubtedly, captured a significant portion of the bitcoin business in the last 3 years since November 2017, by enabling bitcoin buying process through their Cash App.
- Gradually the revenue share for Square Inc. from the bitcoin business has increased over the years as they made about $34 million which contributes to 5% of its revenue, in Q1 of 2018, whereas, the Q1 revenue in 2019 almost doubled to a $65.5 million.
- Looking back Quarter-on-Quarter basis, in Q4 of 2019, Square Inc. recorded a revenue of $178 million and recording a $306 million in Q1 of 2020, now this is about $100 million more than it made from its fiat services.
- Results from Tuesday is depicted as one of the hugest increases while calculating a quarter-on-quarter revenue generation till date in the last few years. Square Inc. accredits an increase in both the demand from the customers and supply of bitcoins.
- Well, as Square continues to generate revenue at an increasing trend from bitcoins, they decided to exclude the revenue from bitcoin business from their total figures.
They back up their decision with a thought that an unpredictable and volatile revenue generated from bitcoins will make it difficult while calculating the overall performance of the organization.
Stay tuned for more updates!