Jack Dorsey’s Square Inc has revealed a 68 percent increase
Jack Dorsey’s Square Inc has revealed a 68 percent increase in its revenue post the adoption of Bitcoin on its Square Cash App. Founded by Twitter Co-Founder Dorsey, Square, the California-based mobile payment app that also provides merchant services, ventured into the crypto world with the launch of the Square Cash App last year. The app that currently boasts of more than 7 million users, added Bitcoin in November 2017 as part of testing, and went live earlier this year.
Square Cash App released a revenue report on November 7, 2018. As per the report, the revenue grew by as much as 68% over the period of one year. The total net revenue was reported at USD 882 million, of which as much as USD 43 million was generated through Bitcoin. The total adjusted revenue stood at USD 431 million.
Sources from the company mentioned that Bitcoin generated revenue is not included in the net adjusted revenue as they want to spread awareness about the cryptocurrency. The report added:
“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.”
Even though the revenue generated through Bitcoin forms a tiny percentage of the profits earned by Square, it still amounts to five percent of the total revenue. This all was a consequence of the introduction of the Square Cash App along with support of the Bitcoin cryptocurrency.
Square finds its competition in Venmo. Venmo does not support cryptocurrencies, and ever since Square Cash App entered the crypto space, there has been a huge influx of users on the Square Cash App. With 34 million total downloads, Square Cash App has successfully beaten the number of downloads of Venmo on the App Store as well as the Google Playstore, which stands at a cumulative 33 million.