The mobile payment processor Square reported a huge increase in the annual profit margin in its bitcoin business in Q1.
This revelation came to light after the US company released its revenue report for the first quarter of 2020. Square offers Bitcoin marketing of its mobile platform for mobile payments Cash App.
Square reported that their “Bitcoin revenue” amounted to $ 306 million. That $ 306 million turned out to be just $ 7 million in profit in Q1, a ratio significantly less than some of the company’s other sectors; the sector with the highest gross revenue is from transaction-based services, with an accumulated amount of about $ 293 million in revenue revenue of $ 758 million.
However, revenue / profit in the Bitcoin sector grew by 700 +% on an annual basis, with figures showing that in the first quarter of 2019, revenue was $ 65.5 million, with a profit of only about $ 829,000.
The report says Bitcoin revenue “is due to an increase in transactions with active customers of the asset and an increase in consumer demand as a result of the decline in the price of Bitcoin.”
Also as an explanation, Square claims to be sequestering its “Bitcoin revenues” because “they believe that the deduction of BTC revenues better reflects the economic benefits as well as our efficiency from these transactions.”
Another interesting point of the report was the positive effect of CARES payments (for veterans) by the US government. The report suggested that a 300% increase in direct deposits and a 400% increase in new direct deposit users in April came down to CARES, which helped to ” significantly increase retained funds, as customers have more than $ 1.3 billion in total.” in the balances held in their accounts at the end of April. “