Square Earnings Report Records Over $71M in Bitcoin Transactions in 2018

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Square Earnings Report Records Over $71M in Bitcoin Transactions in 2018

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Square Cash has published its quarterly earnings report, which it is required by law to submit to the US Securities and Exchange Commission (SEC). The report shows how much Bitcoin it has transacted since launching its Bitcoin buying and selling service and how much profit it has made from it.

In the first half of 2018, Square Cash facilitated USD 71.1 million of Bitcoin transactions, and saw slight growth in Bitcoin transactions from USD 34.1 million to USD 37 million from Q1 to Q2. Overall, Bitcoin transactions account for 4.8% of Square Cash’s USD 1.48 billion of total revenue in the first half of 2018.

Square Cash is a popular payments service that can be used to send money to friends instantly. It added Bitcoin support in November 2017, which may have been part of the reason Square’s stock market cap rallied USD 8 billion. However, Square Cash is barely pulling in profits from its Bitcoin business, since it keeps fees as low as possible to attract customers. It says in its earnings report, “We consider our role in the Bitcoin transactions to be facilitating customer access to Bitcoin”.

Square Cash’s Bitcoin profit margin is less than 1%, with earnings of USD 643,000 in the first half of 2018. Bitcoin profits nearly doubled between Q1 and Q2, from USD 223,000 to USD 420,000, but this is tiny compared to Square Cash’s overall profits of USD 571 million in the first half of 2018.

It’s hard to measure exactly how much actual Bitcoins Square Cash transacted in the first half of 2018 since Bitcoin’s price is very volatile but it could be roughly approximated that the USD 71.1 million of Bitcoin revenue translates to BTC 10,000 of volume during the first half of 2018. This is a very low volume compared to major Bitcoin exchanges, which have billions of dollars of Bitcoin trading volume daily.

It’s possible that the 2018 Bitcoin bear market has slowed the growth of Square Cash’s Bitcoin service, and it will be interesting to look at their numbers again after the next rally, since Square Cash is one of the easy ways to buy Bitcoin in the United States.


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