Square, a mobile payments firm, has announced its 2018 second quarter financial results, reporting that is has made revenue of $37 million from Bitcoin.
Bitcoin Revenue Worth $37 Million
Square Inc, which developed Square Cash; a mobile payment platform, posted its 2018 second quarter financial results on the 1st of August. These results show that the firm has posted a relatively strong performance in this time period. According to the posted financial results, the company registered a 48% increase in its total net revenue year on year to $ 815 million and a 60% increase in its adjusted revenue year on year to $385 million.
These recent figures show an increase in growth when compared to the results the firm posted in the first quarter of 2018 i.e. 45% and 51% respectively. Although the firm delivered better numbers than was expected by many financial analysts, the company’s stocks experienced a slight fall in prices during Wednesday’s after-hours trading. Revenue realized from Bitcoin alone stood at $37million of the total net revenue posted in the second quarter results.
This quarter’s related costs stood at $36.6 million which resulted in an increase in the adjusted revenue to just over $400,000. These numbers show that the mobile payment firm has managed to double the profits from its Bitcoin trading for this period, in comparison to the $200,000 profit it posted in the first quarter.
A Crypto Learning Curve
While speaking to reporters just before the company’s earnings call, Sara Friar said that the firm was not seeking to push for the monetizing of Bitcoin that day, the Chief Financial Officer for Square said that the costs were enough for them to go into the market and purchase Bitcoin.
These sentiments were indicative that Square may still be under the learning curve of its Bitcoin strategy. Jack Dorsey, who is the Chief Executive Officer for Square, has alluded to this in the past. During his statements in the first quarter’s results announcement, he said that the firm had delved into the crypto sphere because they had noticed a growing need for buying crypto from its cash customer base who wanted to utilize their cash accounts.
He said this was the main reason why they got into crypto trading, to make this process easier for its clients. He, however, added that the firm wants to first learn what this process will mean for it as a whole and for its industry and thus aimed at being the best in class for providing an easy and simple way of exchanging cryptocurrencies with the hope that they would, later on, build up from that point.
New York Issues Bitlicence
The service of buying Bitcoin was incorporated into the mobile payment service in November last year. It went through a brief testing phase before it was offered to consumers, enabling users from almost all the states in the United States to buy and send Bitcoins, in January 2018.
Square received a BitLicence from New York regulators, which could see them offer this service to all states across the country.