Bitcoin trading is supposed to be big business. That isn’t the case for Square.
According to its 10-Q quarterly report filed with the US Securities and Exchange Commission, Square brought in approximately $34.1 million in revenue from its bitcoin transactions during the first quarter of the year. That sounds terrific at first glance but, unfortunately, that was offset by bitcoin costs of $33.87 million. That means Jack Dorsey’s payments processing company took home just about $223,000. Though not a great look, bitcoin-related profits may be beside the point for the company.
It appears that profits were simply the difference between the price at which consumers purchased the cryptocurrency and the price at which Square initially acquired the bitcoin. Most major cryptocurrency exchanges charge small transaction fees for the purchase or sale of bitcoin and other cryptocurrencies, but Square’s Cash App does not. Some analysts have speculated that Square integrated bitcoin trading to encourage customers to download the Cash App.
ETHNews reported on Square’s integration in February 2018.
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