Square’s Cash App, a top-rated mobile payment service that provides an easy way to send, spend, save, and invest your money, has publicly announced on Wednesday (May 6, 2020) that its Bitcoin revenue has topped its fiat revenue for the first time in Q1 2020.
As a publicly traded fintech company, Square released this news in its first-quarter earnings report, which stated that Cash App brought in:
- $306 million on its Bitcoin revenue in Q1
- $222 million on all its other fiat-powered services in Q1
The report also shared:
“In the first quarter, Cash App gross profit grew 115% year over year.”
However, even though Bitcoin surpassed USD in Cash App’s revenue, the app’s gross profit remains to be found primarily outside of crypto.
Out of the $222 million in non-Bitcoin revenue, $178 million of that was profit, and out of the $306 million in Bitcoin revenue, just $7 million of that was profit in the first quarter of 2020.
But to put things into perspective, Cash App earned just $8 million in bitcoin profit through the whole of 2019, which goes to show that growth in Bitcoin sales was steep this quarter.
Adding to that, Square noted in a filing with the U.S. Securities and Exchange Commission:
“Bitcoin revenue for the three months ended March 31, 2020, increased by $240.6 million or 367%, compared to the three months ended March 31, 2019. The increase was due to growth in the number of active bitcoin customers, as well as growth in customer demand.”
Moreover, Cash App’s significant growth in Bitcoin revenue could be partially attributed to Square CEO Jack Dorsey’s love for Bitcoin. Dorsey has endorsed Bitcoin on numerous occasions and has made buying Bitcoin, quick, easy, and secure with the Cash App.
