Square has reported its Q2 earnings and it has come out that the company made $125M in Bitcoin sales via its Cash App. The impressive numbers are double that from Q1.
It seems that Bitcoin sales are booming on Cash App. In total, the company generated some $2M in gross profit out of $125M in Bitcoin sales. The company said that these profits made up half of its total revenue through the app.
Square customers bought $125 million of Bitcoin last quarter on Cash App!
That’s 5 straight quarters of *accelerating* revenue growth for Square's Bitcoin business, and 237% growth YoY.
TO THE MOON 🚀 pic.twitter.com/6A3bNtaMTF
— Kevin Rooke (@kerooke) August 1, 2019
Last quarter, Square reported that it had generated some $65.5M in revenue and $832,000 through Bitcoin Sales. It was thought then that Q1 would be the company’s best quarter, but this recent earnings report shattered all expectations. Just for comparison, Bitcoin just brought in $166M in revenue during the entirety of 2018. Just halfway into the year, the company has far exceeded last year’s numbers.
Bitcoin is far aways the main revenue stream for Square, however, despite these impressive numbers. The company reported, in total, $1.17B in total revenue for Q2 with a $6.7M net loss. Yet, it seems that its Bitcoin bet as paid off and will continue to exceed expectations going into 2020. Cash App has become an especially popular means of buying Bitcoin since the fees are quite low, which explains the measly $2M in profit despite $125M in revenue for the company.
As one user (@pedtromvpg) points out, U.S. users have started to buy Bitcoin in growing numbers. Since the beginning of 2018, around $365M in Bitcoin was purchased, totaling around 60,719 BTC.
A little over 60k bitcoins sold for a total or 365M dollars since early 2018.
Just in the US! pic.twitter.com/TThNXSqtsJ
— Pedro 🔑⚡️ (@pedromvpg) August 2, 2019
It seems that Bitcoin’s momentum is building in the United States, with Q2 sales bring a drastic break from the lackluster for much of 2018. Cash App is clearly leading the way, and hopefully, other companies take notice that ease-of-access and low fees are generally what pushes retail adoption.
Images courtesy of Shutterstock, Twitter.