US-based payment platform Square has reported it made $166 million in annual Bitcoin (BTC) revenue for 2018.
Square, which shares its CEO Jack Dorsey with Twitter, achieved just over $52 million in Bitcoin sales for Q4, surpassing Q3 by $9 million and Q2 by more than $15 million. Clear profit from the Bitcoin operations, which involve Square’s consumer app Cash, remain low, as purchasing costs account for the vast majority of revenue.
? BREAKING NEWS ?
Square customers bought $52 million of Bitcoin on the Cash App in Q4 2018.
Bitcoin sales were over $166 million on the Cash App in 2018, growing every single quarter!
— Kevin Rooke (@kerooke) February 27, 2019
Sales of Bitcoin have seen consistent growth on Square’s Cash app, with revenue increasing every quarter in 2018 from $33 million in Q1 to $52 million in Q4.
Bitcoin industry figures appeared buoyed by the results, which contrast a previously forecast slowdown for Square more generally, with share prices falling following the publication of its earnings report and Q1 2019 profit warning.
Dorsey told CNBC in a subsequent statement: “For the year ahead, we continue to focus on three things: add strength to in-person payments, to mobile payments, and also to online. We’re really excited about everything we’re doing in financial services.”
Lightning payments coming soon to Square?
As Dorsey confirmed on the Stephan Livera podcast earlier this month, the Lightning Network and its instant transactions could soon appear on the Square Cash app.
“I think there’s a lot more we can do in terms of making (Bitcoin) more transactional, making it simple enough that I could justify buying a cup of coffee in the morning,” he said.
Square’s peer-to-peer Cash app seemingly had a breakout quarter in Q4 2018, with more than 15 million monthly active customers in December 2018 – double the amount of the previous year.
The company began offering Bitcoin purchases in Q1 last year following initial testing in November 2017.
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