US-based financial services company, Square has released its shareholder letter for Q3 which contained insights on how the firm has benefited from their decision to integrate bitcoin to its payment service.
It was only in late January that Square made bitcoin trading available on the Square Cash App which previously supported only fiat currencies.
Now after recording $37 million in bitcoin revenue during Q2, the company’s letter revealed that $43 million was realized from bitcoin within Q3. This represents a $6 million increase and is impressive given that the bitcoin markets has had its high and low points within the period under consideration.
A section on the shareholder letter reads,
Total net revenue was $882 million in the third quarter of 2018, up 51% year over year. This includes $43 million of bitcoin revenue. Excluding bitcoin revenue, total net revenue was $839 million, up 43% year over year.
After taking into account Square’s bitcoin purchasing costs, profits from bitcoin reportedly stood at $500,000.
Reaping The Rewards
At the time of integrating Bitcoin payments, Square CEO Dorsey had tweeted about the new currency,
We support Bitcoin because we see it as a long-term path towards greater financial access for all. This is a small step.
Indeed, the small step has resulted in big results for Square and can only get better from here. The reported revenue increase is not a surprise because it was only earlier in the week that Square’s market cap surpassed that of social media giants Twitter Inc.
Square is currently available to users in all 50 U.S States with global expansion also on the radar.