Bitcoin Revenue Resilience

Even in the face of a global pandemic, Square’s Bitcoin revenue has proven to be as stubborn as a cat refusing to take a bath. While the popular payments app faces significant challenges, its integration of Bitcoin transactions through CashApp has continued to thrive.

First-Quarter Revenue Estimates Hit Hard

March started on a positive note for Square; however, a sudden twist of fate—thanks to COVID-19—sent the company scrambling. They recently slashed their first-quarter revenue estimates from a promising figure of $1.3–1.344 billion to a sobering $515–$525 million. What happened? A dip in Seller GPV (Gross Processing Volume) that took a nosedive by about 25% year-over-year in just ten days.

Full-Year Guidance Withdrawn

Due to these plummeting estimates, Square had no choice but to withdraw its full-year guidance for 2020. It looks like the crystal ball is a bit foggy right now. The company is expected to shed more light during its first-quarter earnings call in May—but between you and me, they might need a stronger crystal ball.

CashApp’s Bitcoin Boom

Let’s pivot to where the sunshine really shines: Bitcoin. Square’s CashApp has been a dedicated supporter of cryptocurrency, raking in $178 million in Bitcoin revenue during the last quarter of 2019 alone. Talk about a silver lining in a cloud of uncertainty!

The Paradox of Economic Struggles

As the world dives deeper into economic turmoil, paradoxically, Bitcoin seems to be emerging as a new safe haven for investors. Square’s spokesperson noted that despite the market struggles, there’s been a noticeable uptick in Bitcoin adoption and investments through CashApp. Are investors trying to outsmart doom and gloom? It certainly looks like it!

While Square is dealing with its fair share of monetary headaches, the silver lining might just be its ability to ride the wave of Bitcoin growth—hopefully, with a life vest on!