Square’s Cash App reported Wednesday, that bitcoin (BTC) revenue during the first quarter of the year, soared 367% to $306 million from $65 million a year ago. Quarter-on-quarter, the figure is up 71%.
The increase is thanks “to growth in the number of active bitcoin customers, as well as growth in customer demand as a result of the decrease in the price of BTC,” Square said.
It is the first time that BTC revenue has exceeded fiat revenue at the online payments company. For the three months to March 31, 2020, Cash App fiat revenue amounted to $222 million, bringing total sectoral revenue to $528 million.
At $7 million, bitcoin-related profit accounted for just 3.8% of Cash App gross profit of $183 million. That compares with $8 million earned for the whole of 2019.
Square said total revenue for the three months climbed 44% to $1.38 billion from a year earlier. Net quarterly loss expanded to $106 million from $38 million last year.
The company reported a net income of $391 million in the fourth quarter of 2019, helped by a $373 million gain from the sale of subsidiary Caviar.
Covid-19 helped to drive online transactions. In April, said Square, as Cash App recorded its “highest monthly totals for net-new transacting active customers, peer-to-peer volumes …direct deposit transacting active customers and bitcoin volumes…” Direct deposits, for example, grew 3x compared to March.
Going forward, Square indicated that it will focus on customer acquisition and product velocity for it’s Cash App. According to the earnings report:
We see significant opportunity to invest in acquiring new customers, driven by peer-to-peer payments as well as creative marketing strategies. We intend to continue to identify opportunities to launch new products and expand the ways that Cash App can help customers manage their money.
Cash App allows users to transfer funds between the U.S. and U.K. with no fees, as well as to buy bitcoin.
At the time of writing, shares of Square are up 6.15% at $72.39 in morning trade at the New York Stock Exchange. Over the past 52 weeks, the stock has reached a high of $87.25 and a low of $32.33.
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