By CCN: Square might have had a mixed first quarter performance, but the Cash App, which is where investors buy and sell bitcoin, was a bright spot. Bitcoin revenue nearly doubled to $65.5 million from $34 million in the year-ago period. Cash App volume, where the company boasts “15 million monthly active users,” expanded more than 100% since last year’s Q1.
Square’s bitcoin revenue has been steadily increasing since Q1 2018, during a bear market no less. It’s a reflection of retail investor demand, given the peer-to-peer nature of the Cash App. Square also placed a $10,000 weekly cap for customers buying bitcoin, which suggests that the demand for bitcoin is widespread.
- Q1 2018 = $34 million
- Q2 2018 = $37 million
- Q3 2018 = $43 million
- Q4 2018 = $52 million
CEO Jack Dorsey says that eventually, the Cash App will integrate second layer protocol Lightning Network for faster bitcoin payments. Maybe they should consider adding more cryptocurrencies. Bitcoin is working for them and there is no better time than the present. The company has been hiring for Square Crypto, but details are scarce:
We get a lot of questions about who we’re talking to, what we’re working on, and when it will be released. Breathe. This project is not only a first for a company our size, it’s also a first for any company ever. We’re learning as we go. Big things are coming. Believe. 🌀👁
— Square Crypto (@sqcrypto) April 24, 2019
Square’s earnings, released Wednesday, showed that the company made a killing by beating on expectations on many levels. However, what worries investors is that the mobile payments provider missed on payment volume and warned that things aren’t looking too rosy for the current period. As a result, Square’s stock tanked 10% today.
Cash App a Bright Spot
The popularity of Square’s Cash App has been growing steadily since it was rolled out in 2017. It allows people to buy and sell bitcoin.