Jack Dorsey’s Square Sold $517M Worth of Bitcoin in 2019

on Feb 28, 2020
  • Square sold $517 million worth of Bitcoin in 2019, accounting for roughly half of Square’s revenue in Q4 2019
  • The company, owned by Twitter’s CEO Jack Dorsey, generated $8 million in gross profits last year
  • In the shareholder letter, Square included a Q1 2020 revenue forecast of $715 million

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Square sold $517 million worth of Bitcoin last year with sales of BTC covering around half of the company’s revenue in Q4 2019, data from the latest shareholder letter shows.

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Square reportedly saw Bitcoin purchase volumes of $178 million in the fourth quarter. With selling more than half a billion worth of Bitcoin in 2019, the financial services company generated $8 million in gross profits. Roughly 2% of gross profit came from subscription and transaction-based services.

The company’s Q4 2019 report on Bitcoin sales indicates the rising crypto activity on the payment platform. BTCManager reports from last year showed that revenue from BTC sales was climbing at a fast pace, especially after launching such features as BTC deposits.

Crypto analytics firm Messari reported that Bitcoin sales on the Cash App accounted for more than 10% of the $5 billion Bitcoin mining rewards from last year. Cash App has a customer base of more than 24 million and it is now the second most-used mobile payment application on Google Play.

In the letter, Square included a Q1 2020 revenue outlook of $715 million, only from Bitcoin sales. The company believes that sales of the number 1 cryptocurrency provide a large percentage of its overall profit margin. The $8 gross profits from Bitcoin sales translate to only 2 per cent of the company’s $1.9 billion profit margin for 2019.

“[In] the first three months since its launch, equity investing has seen the fastest adoption of any product ever launched by Cash App. Customers are taking advantage of the ability to buy fractional shares, with the average customer buying around $20 of stock every time they make a purchase,” the company said in the shareholder letter.

In December, Cash App consumers generated over $30 per user year-over-year, with “bitcoin actives generating 2-3x annual revenue compared to other cash customers,” said Square owner and CEO of Twitter Jack Dorsey.

Redesigning the Cash App to incorporate shares trading has almost doubled the number of first-time BTC buyers through the application within the 30 days of the redesign.

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