Slim Margins on Bitcoin
Overall, they’ve made 51 percent more than they did last year up to
this point, and revenue is 68 percent better than they did during the
same quarter of last year. BTC sales are one of its smallest
components, but they still represent a notable portion of total
revenue — around 5 percent.
They mention that their adjusted revenue figures reflect a deduction
of bitcoin transaction costs, noting that:
“We deduct bitcoin costs because 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 when we sell bitcoin to customers, and we
have no control over the cost of bitcoin in the market,
which tends to be volatile, we believe deducting bitcoin
costs is a better reflection of the economic benefits as well
as the Company’s performance from the bitcoin
transactions.”
Actual profits on the BTC revenues were therefore roughly $500,000,
about 20 percent more than what they made in the previous quarter on
the same product. Square has yet to add a variety of cryptos to its
offerings, but when or if it decides to do so, we expect these
revenues to increase as they can likely have higher margins on cryptos
that are perceived as harder to acquire using traditional means.
Square on Pace to Become Leading
Crypto Provider
Square’s Cash App allows people to digitally transact money much like
PayPal, and also allows users to invest in the most prominent
cryptocurrency. They secured a patent for their payments network
earlier this year, potentially locking themselves in as the premier
bridge between legacy payment rails and cryptocurrencies.
As CCN reported, Square brass have previously noted that
cryptocurrency and BTC, in particular, is a “transformational ”
technology.
Given that Square is used for many purposes besides investing in or
holding BTC, it’s likely to continue growing as a premier crypto
provider and gives the added benefit of exposing its massive user base
to cryptocurrencies.
The firm’s Cash App has more than 10 million installs on the Google
Play store and provides a seamless crypto purchasing experience. In
this respect, they are light years ahead of PayPal, who have yet to
integrate cryptocurrency in any meaningful way, despite several
notable rumors over the years . As of now, one can still not simply
purchase crypto through his or her PayPal wallet, a feature that Square
Cash now has.
Overall, they’ve made 51 percent more than they did last year up to
this point, and revenue is 68 percent better than they did during the
same quarter of last year. BTC sales are one of its smallest
components, but they still represent a notable portion of total
revenue — around 5 percent.
They mention that their adjusted revenue figures reflect a deduction
of bitcoin transaction costs, noting that:
“We deduct bitcoin costs because 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 when we sell bitcoin to customers, and we
have no control over the cost of bitcoin in the market,
which tends to be volatile, we believe deducting bitcoin
costs is a better reflection of the economic benefits as well
as the Company’s performance from the bitcoin
transactions.”
Actual profits on the BTC revenues were therefore roughly $500,000,
about 20 percent more than what they made in the previous quarter on
the same product. Square has yet to add a variety of cryptos to its
offerings, but when or if it decides to do so, we expect these
revenues to increase as they can likely have higher margins on cryptos
that are perceived as harder to acquire using traditional means.
Square on Pace to Become Leading
Crypto Provider
Square’s Cash App allows people to digitally transact money much like
PayPal, and also allows users to invest in the most prominent
cryptocurrency. They secured a patent for their payments network
earlier this year, potentially locking themselves in as the premier
bridge between legacy payment rails and cryptocurrencies.
As CCN reported, Square brass have previously noted that
cryptocurrency and BTC, in particular, is a “transformational ”
technology.
Given that Square is used for many purposes besides investing in or
holding BTC, it’s likely to continue growing as a premier crypto
provider and gives the added benefit of exposing its massive user base
to cryptocurrencies.
The firm’s Cash App has more than 10 million installs on the Google
Play store and provides a seamless crypto purchasing experience. In
this respect, they are light years ahead of PayPal, who have yet to
integrate cryptocurrency in any meaningful way, despite several
notable rumors over the years . As of now, one can still not simply
purchase crypto through his or her PayPal wallet, a feature that Square
Cash now has.
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