Square's third-quarter Bitcoin revenue hits record high

The startup payment company Square recently announced its third-quarter earnings, with its cash app reaching a Bitcoin sales volume of $148 million, surpassing the second quarter's $125 million.

The payment company founded by Twitter co-founder Jack Dorsey released its latest financial report on Wednesday, showing a revenue of $1.27 billion from July 1 to September 30 this year.

While Square's payment business remains the main product of this publicly traded company, more users are using Square's Cash App as a tool for their first Bitcoin investments, especially after the launch of the new user interface of the application. The company noted:

Since the redesign of the user interface, the number of users making their first Bitcoin purchase has approximately doubled.

Square had a revenue of only $43 million in the third quarter of 2018, which has now grown by 244%, and in its guidance for the fourth quarter, Square stated:

Due to the outstanding performance of the Bitcoin business in the third quarter, we are increasing the upper limit of total net revenue for 2019 by $110 million.

Since adding the feature to purchase Bitcoin in its Cash App in November 2017, Square has experienced rapid growth, generating $125 million in Bitcoin revenue last quarter, which is twice the amount in the first quarter of 2019.

The report pointed out that although usage has increased, Square is still striving to improve the company's net profit through Bitcoin trading. The net profit was approximately $830,000 in the first quarter, and around $2 million in the second and third quarters.

With news of increasing transaction volume, Square announced that it will now charge a 1.76% Bitcoin transaction fee. Previously, Square's Bitcoin revenue was generated through the spread or the increase in the current market price of Bitcoin. The fixed fee will now replace the spread, as Square believes this enhances transparency.

In fact, in the $125 million Bitcoin transaction volume in the second quarter of 2019, Square's net profit was $2 million, equivalent to the 1.76% fee, even before the new fee structure was implemented.

The Cash App shows great potential in the Bitcoin field, allowing U.S. users to easily purchase Bitcoin directly using credit cards through the application, which seems to have become a popular way to buy.

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