On Thursday (August 1), Jack Dorsey, the CEO of both Twitter and Square, said during Square’s Q2 2019 Earnings Call “We love you, Bitcoin.”
Payment solutions provider Square was founded in February 2009, i.e. it is 10 years old, just like Bitcoin (BTC). The three co-founders are Jack Dorsey (who is also the company’s Chairman and CEO), Jim McKelvey, and Tristan O’Tierney.
Square’s Cash App
Four years after the launch of Venmo, PayPal’s peer-to-peer (P2P) mobile payment solution, Square (whose founder and CEO is Jack Dorsey) launched a competitor called “Square Cash”, a beautiful, simple, and fun-to-use app, which got renamed to “Cash App” later.
Cash App, which is one of Square’s most popular products, allow a user to request money from and to transfer money to another user. Users can withdraw the money via a debit Visa card called “Cash Card” or by transferring it to a bank account.
Cash App started supporting buying and selling of Bitcoin (BTC) in mid November 2017 in a very limited rollout; the feature was officially launched in late January 2018.
Here is a tweet from Dorsey (who is a huge believer in Bitcoin) announcing the news on 31 January 2018:
Instant buying (and selling, if you don’t want to hodl) of Bitcoin is now available to most Cash App customers. We support Bitcoin because we see it as a long-term path towards greater financial access for all. This is a small step.
We also made this! https://t.co/z3u0liDNk4
— jack 🌍🌏🌎 (@jack) January 31, 2018
The reason that Dorsey said “available to most Cash App customers” is because initially Square did not have the necessary licenses to provide this service in the following four states: New York, Georgia, Wyoming, and Hawaii.
Then, in June 2018, Square became the ninth company to receive a BitLicense from New York State Department of Financial Services (DFS), which allowed Dorsey to send out the following tweet:
Buy and sell bitcoin right in Cash App…now in New York! https://t.co/sIvlVoSXun
— jack 🌍🌏🌎 (@jack) June 18, 2018
According to Bloomberg, on 16 May 2018, Dorsey, who is also the CEO of Twitter, shared his belief in Bitcoin with a crowd of crypto enthusiasts at the Consensus 2018 conference in New York:
The internet deserves a native currency; it will have a native currency. I don’t know if it’ll be Bitcoin or no, but hope it will be.
Square’s Q2 2019 Results
According to Square’s “Q2 2019 Shareholder Letter”, the company drove “strong revenue growth at scale”.
Here were some of the key highlights from this report:
- Total net revenue was $1.17 billion, growing 44% year-over-year (YoY).
- Adjusted revenue was $563 million, growing 46% year-over-year.
- The Cash App ecosystem generated $260 million; excluding Bitcoin, Cash App revenue was $135 million.
- Overall, the company suffered a net loss of $7 million in this quarter.
The report also mentioned that during Q2 2019, Bitcoin revenue “benefited from increased volume as a result of the increase in the price of bitcoin, and generated $2 million of gross profit.”
According to the transcript of the Q2 2019 Earnings Conference Call, during the prepared remarks section of the earnings call, Dorsey made the following comments about Cash App:
The Cash App ecosystem continues to exceed our expectations. In just three years, Cash App revenue performed basically $0 million to $135 million, excluding Bitcoin. We love you, Bitcoin.
This is probably the first that a top CEO has used word “love” in conjunction with Bitcoin at an earnings call.
This prompted Anthonly Pompliano (aka “Pomp”), Partner at Morgan Creek Digital Assets to send out the following tweet:
“We love you Bitcoin” — @jack
Who would have thought it would only take 10 years for a public company CEO to say this on an earnings call! 🙏🏽
— Pomp 🌪 (@APompliano) August 1, 2019
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