Square Cash App, in a letter sent to its shareholder about Q3 results, has stated that it served numerous first-time Bitcoin (BTC) buyers, despite posting a decline in profits.
Square, a payment processing company, disclosed third-quarter results in its letter to shareholders. The company reported 3Q19 Cash App earnings of $123 million on revenue of $307 million.
In particular, Square’s Cash App posted $148 million in Bitcoin revenue. However, the enterprise recorded a massive $146 million in Bitcoin costs during the third-quarter, which generated only $2 million profit on Bitcoin sales in the same time frame.
In spite of small profit margin on BTC transactions, an increasing number of users are signing up to Square’s Cash App in order to invest in Bitcoin.
From the time, the company launched the reworked Cash App’s customer platform, adoption of offerings related to Bitcoin and Cash Card has grown considerably. The letter further highlighted the strong rise in Bitcoin investors.
“First-time Bitcoin buyers have approximately doubled and Cash Card orders have seen a meaningful uplift.”
The shareholder letter further highlights that in 3Q19, total net revenue increased 44% y-o-y to $1.27 billion and adjusted revenue increased 40% y-o-y to $602 million. Net income was $29 million in Q3 2019, compared with a net income of $20 million in Q3 2018.
The Cash App, Square’s popular payments app, was originally structured to enable fiat currency trading but later on started facilitating crypto trading.
Square’ Cash Card is a no-fee business debit card that facilitates sellers to spend cash soon after they conclude a sale. The moment a seller receives payment, the proceeds are credited to Square stored balance, which can later be withdrawn or spent from an ATM.
Square App continues to widen its scope of operations. Of late, Jack Dorsey, CEO of Twitter and Square, stated that Square’s Cash App is all set to facilitate users to buy fraction of stocks for as little as $1.
Dorsey elaborated on the scheme of buying stocks in fraction:
“Now anyone can buy $42 or even $1 worth of Berkshire Hathaway A ($BRK.A, or $TSLA or $SFIX or…) instantly and for free right in @CashApp. Really proud of the team for making buying stocks and building wealth accessible to more people. Rolling out now!”
Dorsey also highlighted that users who are not equity investors can purchase fractions of Bitcoin using the same platform.
