Are you invested in Square? You should be happy today. The third-quarter shareholder report shows that the company made an astonishing 51% more than they did at this point last year, with a mind-boggling 68% improvement on revenue. Bitcoin (BTC) transactions accounted for 5% of Square’s revenue with $43 million USD. BTC accounts for a small portion of the company.
Square is a mobile payments and services company based in San Francisco. Focusing on payment services using digital apps and mobile card readers, since 2009, they’ve taken step to ensure their prominence in becoming one of the more crypto-friendly payment processors.
Cash App, the company’s main application, allows people to transact currency digitally and also invest in BTC. They recently secured a patent for this service back in late August. This patent potentially secures Square’s position as a bridge between bitcoin and fiat currency.
After adjustment, revenue for Square’s Q3 comes to $431 million USD. They state that the adjusted figures reflect a deduction in the cost of Bitcoin transactions. Their comment in revising was:
“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.”
Square has focused only on Bitcoin, and so does not offer other cryptocurrencies. If it decides to do so, their profit and revenue can be expected to rise even higher. Greater margins could be made on cryptocurrencies that are generally more difficult for ordinary people to acquire with other means.
What do you think? Do you hold some Square stock? We know that Square is coming out with a potentially huge Point-Of-Sale terminal that could be cryptofriendly. Do you think this will help usher in mass adoption? Let us know on our Facebook page!
