On May 6, after the market closed, Square revealed its reports for the first quarter of 2020. Square published the Cash App revenue, most of which came from Bitcoin.
About Square and Cash App
Square, Inc. revolutionized payments in 2009 with Square Reader, making it possible for anyone to accept credit card payments using a smartphone or tablet.
Today, they create tools to empower businesses and individuals to participate in the economy. Sellers use Square to reach buyers online and in person, as well as to manage their businesses and access financing.
People use the Cash application to spend, send, store and invest money. Currently, Square has offices in the United States, Canada, Japan, Australia, Ireland and the United Kingdom.
Square to support U.S. stimulus plan
Bitcoin’s role in Square and the numbers for the first quarter
Revenues for the first quarter of the year of $306 million and $528 million in cash app come from Bitcoin.
Despite these numbers, Bitcoin represented a small fraction of the Cash App earnings, only $7 million of total earnings of $183 million.
The company explained why it separated its revenues from Bitcoin:
„We deduct Bitcoin revenue because our function is to facilitate customer access to Bitcoin.“
It also added:
„When customers buy Bitcoin Lifestyle Review / The News Spy Review / Bitcoin Era Review / Bitcoin Profit Review / Bitcoin System Review through the Cash App, we only apply a small margin to the market cost of Bitcoin, which tends to be volatile and out of our control.
COVID-19 encourages the use of Blockchain
Changes during the first quarter in the middle of COVID-19
Since its appearance in late December 2019 in Wuhan, China. The Coronavirus has literally transformed the face of the Earth. As a result, in nearly 120 days COVID-19 did a job that took years: it imposed telecommuting, closed schools and caused millions of unemployed.
It also generated the economy’s rescue plans, restored meaning to quality information on social networking assumptions and left billions in quarantine.
With respect to this entire crisis, at the May 6 investor meeting, a member of the Square team credited „efficient acquisition of new customers“, which generally translates into good marketing and ease of use. Finally, Cash App reported a 115% increase in earnings year over year.
At the same meeting with shareholders, executives, including Jack Patrick Dorsey, emphasized Square’s performance in January and February, when the Coronavirus began to devastate the markets.
Dorsey praised the company’s „agility“ in the midst of this economic crisis. His colleague said, „We are encouraged by the good performance of the Cash App in April.
Great crises have historically always been moments of radical change. Some believe that after the Coronavirus the opportunity will open up to reorganize a better society, others argue that injustice will prevail.
There is no alternative path, humanity has proven that even the most apparently solid can change in an instant. What do you think?