Square Increases Profits Thanks Interest Trend in Cryptocurrency
Square , the financier of Twitter CEO Jack Dorsey presented its quarterly report, in which it showed a tripling of its sales . The main reason, according to the company itself was the growing interest in cryptocurrencies.
According to the document provided by Square to its shareholders , the gross profit for the first quarter of 2021 was 964 million dollars , which meant an annual increase of 79%.
In addition, the firm’s sales processing revenue grew to $ 468 million, 32% more than last year Cash App , Square’s crypto platform, posted a gross profit of $ 495 million; in other words, a year-on-year jump of 171% . Bitcoin (BTC), in particular, was the big star of the company during the first months of the year.
“ In the first quarter of 2021 , total net revenue was $ 5.06 billion , up 266% year-over-year . Excluding bitcoin revenue, total net revenue was $ 1.55 billion, up 44% year-over-year , ” Square’s report reads.
The success of the crypto trading strategy adopted by the finance company in the middle of last year was unimaginable. According to its executives, the results achieved in less than a year equaled those projected for the next three years .
“ During the first quarter of 2021 , we saw significant growth in bitcoin revenue year over year . While bitcoin revenue was $ 3.51 billion in the first quarter of 2021, roughly 11 times more year-over-year, bitcoin’s gross profit was only $ 75 million, or roughly 2% of bitcoin revenue. ” , the company detailed.
Despite the enthusiasm of the recent results of the firm, Dorsey and his team understand that it is not a linear growth that is sustainable over time . The price of BTC, the growth of investor interest or the eventual appearance of new financial tools with a focus on digital assets, are factors that will end up influencing the future of the company.