Square’s Cash App reported a lot of new first-time Bitcoin (BTC) buyers but low profits related to its Bitcoin business, according to its Q3 2019 shareholder letter. On November 6, payment processing giant Square issued a letter to investors detailing the financial figures for Q3 2019. In which it announced that the total net income for its Cash App was $307 million. While the gross profit for Q3 resulted in $123 million.
First-Time Buyers Of BTCs Nearly Doubled
Cash App from Square saw $148 million in revenue from Bitcoin. However, during the third quarter of 2019, the company endured a whopping $146 million in Bitcoin costs, resulting in just $2 million in Bitcoin sales over the same period.
Despite the low-profit margin on BTC transactions, it appears that more and more consumers are finding their way to the Cash App of the Square as a way to invest in Bitcoin. Since the company launched the updated user interface of the Cash App, there has been a significant increase in Bitcoin and Cash Card brand adoption. First-time Bitcoin buyers reported in the letter have roughly tripled, and Cash Card orders have seen a major uplift.
The investor letter also points out that overall net income increased to $1.27 billion year-over-year by 44 % in the third quarter of 2019, and adjusted sales rose to $602 million by 40 % year-over-year. Net income in Q3 2019 was $29 million, compared with a $20 million net income in Q3 2018.
The Cash App the famous payments app from Square. It was initially designed to facilitate fiat currency transfer but soon began to support cryptocurrency trading. Square’s Cash Card is a free debit card and allows sellers to spend their money as soon as they make a purchase. When a seller makes a transaction, the proceeds go to their deposited Square balance automatically. Which can then be invested or withdrawn from an ATM.
Purchase A Fraction Of Berkshire Stock
As an app for transactions, Square App continued to expand beyond its initial purpose. Recently, Twitter and Square’s CEO, Jack Dorsey revealed that Square’s Cash App is poised to enable users to purchase stock fractions with an entry of as little as $1.
Dorsey wrote that now anyone can purchase Berkshire Hathaway A ($BRK.A, or $TSLA or $SFIX) for $42 or even $1 instantly and free of charge at @CashApp. The team is really proud to make more people accessible to buy stocks and build wealth. Roll out now. Dorsey pointed out that users who are not in stocks may use the same interface to buy fractions of Bitcoin.
History Of Square’s Cash App
Cash App is known as Square Cash. It is a mobile payment service developed by Square Inc. It allows users to use a mobile phone app to transfer money to each other. The service registered 7 million active users as of February 18, 2018. Square launched Square Cash for businesses in March 2015, including the ability of individuals, groups, and business owners to use a common username for sending and receiving money, known as a $cashtag. Cash App expanded in January 2018 to support bitcoin trading.
Other article you might like to read:
- Legal Chief Of Coinbase Recommend Private Sector To Build US Digital Dollar.
- Oxfam’s Blockchain: Agricultural Insurance Providers In Sri Lanka
- Ukraine Cooperate with Binance for their Cryptocurrency
- Coinbase Introduces Tezos (XTZ) Staking Reward Services to All US Customers
Currently we are running promotion for 0% Maker and Taker Fee? Click here