Close to half of the revenue Square’s Cash App generated over the fourth quarter of last year came from bitcoin, according to a shareholder letter the firm released.
The company added the option to buy and sell bitcoin back in the summer of 2018, and since then the interest of its users in the flagship cryptocurrency has seemingly been growing, so much so that its Q4 2019 results show a total BTC revenue of $177.5 million, with profits of $3 million.
The Cash App generated non-bitcoin revenue of $183 million. Overall Square reported a year-end profit of $8 million, and $516 million in yearly revenue related to its bitcoin offering. Its CEO, Jack Dorsey, said a redesign of the Cash App allowed users to discover its other services.
The peer-to-peer transfers network continues to be our best acquisition channel… Those new to the app then go on to discover bitcoin.
Square’s Chief Finance Officer amrita Ahuja noted in the call that once a Cash user starts using its investing or bitcoin features, they tend to generate more revenue than regular users. Ahuja touted that the firm is able to acquire users and “keep them engaged and show them additional ways we can continue to add value.”
Square has notably been focusing more and more in the cryptocurrency space, and specifically on bitcoin. Late last year it funded a pseudonymous Bitcoin Lightning Network developer, ZmnSCPxj, so he could focus on the layer-two scaling solution.
Last month, it revealed it was building a Lightning Development Kit (LDK) that will make it easier for developers of wallets and other applications to integrate the layer-two scaling solution into their platforms.
Featured image via Pixabay.