Square, the US financial services company headed by Dorsey, doubled its gross profit and showed more growth figures for the latest quarter.
Several financial analysts had long believed that Square’s shares could surge. Those who are involved in trading know very well that things can change suddenly in the market. Both negatively and positively.
In the case of cryptocurrencies, this is normal. Not long ago, it was analyst Josh Beck himself who had assumed that the price of the stock in question would rise sharply.
Square, profits doubled
Square practically doubled its gross profit in the second quarter of this year. What’s even more interesting is that these profits are essentially tied to those of Bitcoin.
A recent report compiled after a survey by the San Francisco-based company revealed a truly astounding growth figure. Gross profit hovered around $1.14 billion, a whopping 91% increase in one year.
The company’s Bitcoin revenue in particular is generated by its payment service Cash App. This app, which is only available in the US and the UK, brought in around $545 million in gross profit to the company’s coffers, a 94% increase on the previous year’s second quarter.
This means, according to the analysis by internal monitors, that customers actually active on monthly transactions doubled if not tripled.
Square Inc. reported real Bitcoin revenue of $1.82 billion in the third quarter alone. This resulted in a verified 11% increase over the same period in 2020.
Positive trading activity was therefore positively affected compared to previous quarters by Bitcoin’s momentary stability.
The results of Square’s survey reiterate the theme of growing investor confidence in the crypto world, especially in the United States. Investing in cryptocurrencies has therefore seen an upward trend.
The respondents on which the final report from the survey was based, admitted (a good 45%) to having opened a wallet in recent months. And many showed great interest in Bitcoin itself.
Most important piece of data for Square Inc. was the percentage (50%) of respondents who said they had used Square’s Cash App peer-to-peer payment to play on the stock exchange.
And since Cash App allows users to transact in Bitcoin, this should lead to more engagement (and therefore revenue) for Square.
The upward trajectory of Bitcoin and other cryptocurrencies carries with it the echo of rising profits for 2022, especially for companies like Square Inc. that have understood the importance of the link between new investments and digital currencies.
The large universe of online payments is expanding more and more and this leads to a trend that only cements the base of the crypto world.