Square Doubles Its Quarterly Bitcoin Sales Revenue in Q2

Square, a mobile payment startup, on Thursday reported that it generated $125 million in revenue in the second quarter of 2019 from Bitcoin sales through its Cash App.

The Bitcoin-related revenue figure almost doubled compared to the previous quarter, as in Q1 2019, the company reported $65.5 million in revenue from Bitcoin sales, which was itself a record for the company.

The Bitcoin price rally since April also boosted the revenue growth of the platform in terms of volume and resulted in a gross profit of $2 million.

Launched as a mobile-based payment platform by Twitter CEO Jack Dorsey, Square extended its support towards cryptocurrency trading in November 2017 by the launch of its peer-to-peer Cash app.

Bleeding money despite impressive figures

In total, the Cash App generated $260 million in revenue, which shows that its Bitcoin sales brought in almost half of the total reported revenue. The unaudited figures also detailed that the company spent $122.9 million in acquiring the cryptocurrency.

“Our Cash App ecosystem has reached significant scale, generating $260 million in total net revenue in the second quarter of 2019. Excluding Bitcoin, Cash App revenue was $135 million,” the revenue report noted.

Despite the impressive figures, the platform incurred a loss of $7 million in Q2, while in the previous quarter the loss was recorded at $38 million.

“In the second quarter of 2019, total net revenue grew 44% year over year to $1.17 billion, and Adjusted Revenue grew 46% year over year to $563 million,” the report stated. “Excluding the loss of $5 million as a result of the mark-to-market valuation of our Eventbrite investment, net loss was $2 million. Adjusted EBITDA was $105 million in the second quarter of 2019, up 54% year over year.”

The payment company also set up a dedicated crypto team, called Square Crypto, to make open-source contributions to the Bitcoin protocol. The company even hired Steve Lee, an ex-director at Google, as the first member of its new crypto team, FortuneZ reported.

(Photo: Square)

Bitcoin (BTC) $ 31,623.00 8.06%
Ethereum (ETH) $ 1,286.68 9.79%
Tether (USDT) $ 1.00 0.73%
Polkadot (DOT) $ 16.72 7.38%
XRP (XRP) $ 0.263959 5.42%
Cardano (ADA) $ 0.333985 8.01%
Chainlink (LINK) $ 22.22 8.36%
Litecoin (LTC) $ 132.15 8.92%
Bitcoin Cash (BCH) $ 422.96 7.36%
Binance Coin (BNB) $ 40.53 5.83%
S&P 500  ^GSPC 
$3,861.19  $5.83  (0.15%)
Dow Jones Industrial Average  ^DJI 
$31,027.93  $67.93  (0.22%)
NASDAQ Composite  ^IXIC 
$13,669.33  $33.34  (0.24%)
Russell 2000  ^RUT 
$2,167.03  $3.76  (0.17%)
Crude Oil Mar 21  F*CL.NYM 
$52.63  $0.1400  (-0.27%)
$0.0000  $0.0000  (0.00%)