Square, a mobile payments and merchant services provider based in California and founded by Twitter’s Jack Dorsey, had ventured into the world of cryptocurrencies with their Square Cash App earlier this year. With over 7 million active users on Square’s Cash App, Bitcoin was added for testing in November 2017 and went live in January 2018.
On November 7, Square released a revenue report for the third quarter, which showed that the adjusted revenue grew by 68% over the year. The total adjusted revenue was reportedly at $431 million, while the total net revenue hit $882 million. Of the $882 million, $43 million was generated from Bitcoin.
In the mentioned report, Square said that they don’t include Bitcoin generated revenue in the net adjust revenue because they want to spread awareness about Bitcoin among customers.
The report stated:
“We consider our role in the Bitcoin transactions to be facilitating customer access to Bitcoin. Since we only apply a small margin to the market cost of bitcoin we believe deducting bitcoin costs is a better reflection of the economic benefits as well as the Company’s performance from the bitcoin transactions.”
Although the Bitcoin-generated revenue is only a tiny part of the company’s revenue, it still amounts to 5% of the total revenue, considering that the company introduced Cash App and Bitcoin support earlier this year.
Long Hash, a Twitter account that helps its users understand blockchain by providing concrete data evidence, reported on the Bitcoin-generated revenue over three quarters.
For the first quarter [Q1], the revenue from Bitcoin was $34 million, and that of the second quarter [Q2] was $37 million. As mentioned above, the revenue for the third quarter [Q3] was a staggering $43 million.
Square’s competitor Venmo is yet to add cryptocurrency support, but Square’s entry into the cryptocurrency space has caused a huge surge of users on their Cash App. Cash App has beaten Venmo’s downloads both on Google Playstore and Apple’s App Store put together. Cash App has a cumulative download of 34 million while Venmo has 33 million.
A Twitter user, Bitcoin Mate is free on Android, said:
“Call me crazy, but Square is doing more for Bitcoin’s adoption than any company on the planet. Mad respect for Jack Dorsey.”