As required by law, Square Cash has submitted its quarterly earnings report to the US Securities and Exchange Commission (SEC). In the earnings report, it shows how much Bitcoin has transacted since the buying and selling service was revealed and how much profit has been made from it.
During the first half of the year, Square Cash obtained over 71 million USD of Bitcoin transactions. Not to mention the rise in Bitcoin transactions from 34 million USD to around 37 million USD. When thinking long-term, Bitcoin transactions account for around 4.8% of the 1.48 billion USD total revenue from Square Cash in the first half of this year.
The popular payments service, Square Cash, is used to send money to friends in seconds. In November last year, the service added support for Bitcoin, which was most likely the reason for Square’s stock market cap building up 8 billion USD. The profits from the Bitcoin business is hardly being utilised by Square Cash because it wants to keep the fees as low as they go so they can bring in more potential customers.
In the earnings report they said:
“We consider our role in the Bitcoin transactions to be facilitating customer access to Bitcoin.”
With earnings of over 640,000 USD in the first half of this year, the Bitcoin profit margin for Square Cash is under 1%. The Bitcoin profits have almost doubled between Q1 and Q2, starting at 223,000 USD and ending up at 420,000 USD. However, this small in comparison to Square Cash’s long-term profits of 571 million USD in the first of the year.
Of course, it’s difficult to measure to exact number of Bitcoins that Square Cash transacted in the first half of 2018. This is due to the price of Bitcoin being very unstable and that it could be roughly approximated that the 71 million USD of Bitcoin revenue translates to 10,000 in BTC. When compared to other Bitcoin exchanges, this is quite a low number.
However, with all of this in mind it is possible that the Bitcoin bear market could be the reason behind the deceleration in growth in Square Cash’s Bitcoin service.