Square Inc. released their earnings today revealing an interesting piece of information. For the first time, Bitcoin revenue in Square’s Cash App surpassed fiat revenue. Square reported $306 million in Bitcoin revenue vs. $222 million in fiat revenue via its Cash App.
Square’s Cash App business added its largest number of new active customers in March 2020 as many began to use the peer-to-peer app for fundraising, donations, online tipping etc. Square has also benefited as many people have been opting to get their stimulus checks directly deposited to the Cash App.
In a filing with the U.S. Securities and Exchange Commission, Square stated that “Bitcoin revenue for the three months ended March 31, 2020 increased by $240.6 million or 367%, compared to the three months ended March 31, 2019. The increase was due to growth in the number of active bitcoin customers, as well as growth in customer demand.” Just to note, Square’s total revenue from Bitcoin in Q1 of 2019 was $65 million in comparison to Q1 2020 which as stated above was $306 million.
Given the tremendous quarterly and yearly growth it will be very interesting to monitor Square’s upward trajectory through 2020. Square and other such initiatives are important for enabling the ongoing adoption of digital assets by the mainstream.