Bitcoin buyers for Square & # 39; s Cash app doubled in Q3 2019
According to the shareholder letter for Q3 2019, Square & # 39; s Cash App reported many new first-time buyers of Bitcoin (BTC) but low profits associated with the Bitcoin business.
6. In November, the payment processing giant Square sent a letter to shareholders outlining financial figures for Q3 2019, revealing that the total net revenue for the Cash app was $ 307 million, while gross profit resulted in $ 123 million for the third quarter.
First time BTC buyers have almost doubled
Squares Cash app had $ 148 million in Bitcoin revenue. However, the company suffered a total of $ 1[ads1]46 million in Bitcoin costs during the third quarter of 2019, resulting in only $ 2 million in Bitcoin sales in the same time period.
Despite the low profit margin on BTC sales, more and more users are apparently finding their way to Square & # 39; s Cash app as a means of investing in Bitcoin. Ever since the company introduced the redesigned Cash Apps customer interface, the product adoption of Bitcoin and Cash Card has increased significantly. The letter stated:
"First time buyers of Bitcoin have almost doubled and cash card orders have seen a meaningful lift."
The shareholder letter further points out that in the third quarter of 2019, total net revenues increased 44% year over year to $ 1.27 billion, and adjusted revenues increased 40% the year before to $ 602 million. Net revenue was $ 29 million in Q3 2019, compared to net income of $ 20 million in Q3 2018.
The cash app, Squares popular payment app, was originally designed to facilitate the transfer of fiat currency, but began soon to support cryptocurrency trading.
Square & # 39; Cash Card is a free debit card for businesses that allows sellers to spend their money as soon as they sell. When a seller makes a payment, the proceeds immediately go into their Square Saved Balance, which can then be used or deducted from an ATM.
Purchase a fraction of Berkshire Stock
The Square App has continued to expand beyond its original purpose as a payment app. Recently Jack Dorsey, CEO of Twitter and Square announced that Square's Cash app is ready to allow users to buy fractions of shares – with a listing as low as $ 1. Dorsey wrote: [19659006] "Now anyone can buy $ 42 or even $ 1 worth of Berkshire Hathaway A ($ BRK.A, or $ TSLA or $ SFIX or …) right away and free right in @CashApp. Really proud of the team to make stock purchases and build wealth available to more people. Deploy now! "
Dorsey also pointed out that non-stock users can buy fractions of Bitcoin using the same interface.
