Home Alternative Investments Square’s Cash App derives half of its revenue from Bitcoin

Square’s Cash App derives half of its revenue from Bitcoin

by Jonathan Adams
Cash App

According to a shareholder letter published on Feb. 28, Bitcoin revenue amounted to $178 million during the fourth quarter of 2019, while combined non-Bitcoin revenue totalled $183 million

Square’s Cash App derived half of its fourth-quarter revenue from Bitcoin (BTC) services.

According to a shareholder letter published on Feb. 28, Bitcoin revenue amounted to $178 million during the fourth quarter of 2019, while combined non-Bitcoin revenue totalled $183 million.

In total Bitcoin accounted for more than half a billion dollars of revenue across 2019, equating to around $8 million in profits. That’s up from $1.7 million the previous year.

The figures show that Bitcoin is increasing in popularity with smaller retail investors on the peer-to-peer payments app, with the last quarter accounting for almost 40% of Square’s Bitcoin revenue for the year.

Cash App  — from Twitter CEO Jack Dorsey’s firm Square — is currently the second most-used finance app on Google Play, and the 23rd-most used app on the platform overall. It also offers fee-free free stock trading for its 24 million active users.

They’re not major players on Cash App however, with each user conducting $7.42 worth of monthly BTC trades on average. Still, that’s twice as much as December 2018, when the average user generated $3.50 in Bitcoin trades a month.

Per-person Bitcoin revenue is also growing at twice the speed of the platform’s average, with the average quarterly revenue of customers doubling from $15 to $30 since Dec. 2017.

Cash App’s $8 million in Bitcoin profits account for less than 1% of Square’s total $937 million in gross profits when excluding the company’s $373 million sale of its food delivery app, Caviar.

In December Cash App targeted a new generation of Bitcoin investors via an influencer campaign on the short-form video-sharing app.

The campaign saw multiple TikTok-based musicians compose songs titled ‘Cash App’, including a track by influencer Shiggy that generated millions of views on TikTok. In total more than 9,600 paid and organic videos were created during the campaign generating 136.5 million views.

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