In the first quarter of 2020, Square achieved record volumes for bitcoin purchases and sales.
In fact, the letter to investors for Q1 2020 reported record highs in terms of revenues from bitcoin-related activities.
As far as their Cash App is concerned, out of a total of 528 million dollars in revenues, 306 million dollars were derived from bitcoin-related activities (or 58%), while subscriptions, other services and other transactions generated the remaining 222 million dollars.
These $222 million generated by other activities correspond to an increase of 98% compared to the same period of the previous year when bitcoin-related services were only in their infancy and played a marginal role.
In terms of profits, bitcoin-related activities had produced only 7 million out of 183 million, with 176 million generated by other activities.
Nonetheless, compared to the previous quarter (Q4 2019), these profits were 90% higher.
In terms of volumes traded by bitcoin-related services, they increased 367% in the first quarter of 2020 compared to the same period last year, and 72% compared to the previous quarter.
Therefore, it is possible that the enormous growth recorded in Q1 of 2020 by Cash App is mainly due to the success of bitcoin-related services, which led to a significant increase in active customers and transactions.
The trend continued in April, with new monthly peaks in:
- number of active customers,
- peer-to-peer exchange volumes,
- bitcoin trading volumes,
- equity brokerage volumes,
- volume of funds held in custody.
For example, at the end of April, the latter amounted to more than $1.3 billion, while the number of customers increased from 3 million in February to about 14 million in mid-April.
This trend seems to have been fuelled by the financial crisis triggered by the coronavirus pandemic and the subsequent lockdown.
The increased volatility of the markets, and the massive amount of time available, have increased interest in equity and bitcoin investments, according to the company’s CFO, Amrita Ahuja.