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Square's Cash App Sees $148 Million in Bitcoin Revenue in Record-Breaking Q3 2019

Coin Codex 2019-11-07 16:32:51

Financial services firm Square has released its shareholder letter for the third quarter of 2019. As many cryptocurrency fans know, the company’s Cash app gives users the ability to purchase and sell Bitcoin BTC, -1.62%, and this feature is seeing substantial volumes, generating $148 million in revenue in Q3 2019. Despite the impressive revenue figure, the Cash app’s Bitcoin service only generated a relatively modest $2 million in gross profit. 

Square also says that the number of first-time Bitcoin buyers on the Cash app has doubled in Q3 2019. The company explains that the growing adoption of this feature could have been influenced by a redesign of the Cash app interface that launched in September and made it easier for users to find the app’s portfolio of products.

Q3 2019 has been the Cash app’s most successful quarter so far in terms of Bitcoin revenue - in Q2 2019, Cash app generated $125.5 million in revenues from its Bitcoin services, while the figure was $65.5 million in Q1.

Earlier in 2019, Square CEO Jack Dorsey announced the launch of “Square Crypto”, a small team of developers and designers that’s wokring under Square’s wing, making contributions to the Bitcoin ecosystem.  

Institution-focused Grayscale Investments also broke records in Q3 2019

While the Cash app is targeted at retail investors, institutional participation in the cryptocurrency market also saw growth in Q3 2019 – cryptocurrency investment manager Grayscale Investments, for example, recorded the best quarter in its history. The firm saw $254.9 million in inflows to its cryptocurrency investment products, with 84% of the investments being made by institutional investors.

Square's Cash App Sees $148 Million in Bitcoin Revenue in Record-Breaking Q3 2019

27 minutes ago | Peter Wind

Financial services firm Square has released its shareholder letter for the third quarter of 2019. As many cryptocurrency fans know, the company’s Cash app gives users the ability to purchase and sell Bitcoin BTC, -1.62%, and this feature is seeing substantial volumes, generating $148 million in revenue in Q3 2019. Despite the impressive revenue figure, the Cash app’s Bitcoin service only generated a relatively modest $2 million in gross profit. 

Square also says that the number of first-time Bitcoin buyers on the Cash app has doubled in Q3 2019. The company explains that the growing adoption of this feature could have been influenced by a redesign of the Cash app interface that launched in September and made it easier for users to find the app’s portfolio of products.

Q3 2019 has been the Cash app’s most successful quarter so far in terms of Bitcoin revenue - in Q2 2019, Cash app generated $125.5 million in revenues from its Bitcoin services, while the figure was $65.5 million in Q1.

Earlier in 2019, Square CEO Jack Dorsey announced the launch of “Square Crypto”, a small team of developers and designers that’s wokring under Square’s wing, making contributions to the Bitcoin ecosystem.  

Institution-focused Grayscale Investments also broke records in Q3 2019

While the Cash app is targeted at retail investors, institutional participation in the cryptocurrency market also saw growth in Q3 2019 – cryptocurrency investment manager Grayscale Investments, for example, recorded the best quarter in its history. The firm saw $254.9 million in inflows to its cryptocurrency investment products, with 84% of the investments being made by institutional investors.