What’s Up with Square’s Bitcoin Earnings?
In a recent earnings call, Square revealed that its Bitcoin trading through the Cash App barely moved the needle in terms of profitability. While the buzzword ‘Bitcoin’ often draws in the crowd, a mere 5% of Square’s overall revenue came from this digital currency—amounting to just $34.1 million. Unfortunately, profits barely scratched the surface, totaling around $200,000. That’s a meager 0.6% on the $33.9 million spent acquiring Bitcoin. Now that’s a plot twist we didn’t see coming!
The Rollercoaster Journey of Cash App’s Bitcoin Feature
Cash App introduced the option to buy and sell Bitcoin back in November 2017, just as cryptocurrency prices were gearing up for some crazy fluctuations. Launched officially on January 31, just a week before Bitcoin’s price took a nosedive to around $6,800, it seemed like timing was not Square’s strong suit. One wonders if they consulted a fortune teller before laying down their crypto cards!
Counting the Losses: Is Bitcoin a Money Pit?
According to Square, losses from its Bitcoin information have been insignificant, just like the labor involved in unleashing a kitten video on the internet. However, the reported $200,000 in profits is down from $300,000 at the close of 2017, which smacks a little of ominous foreshadowing. As per Square, the Q1 losses were “insignificant”—but if they keep on this trend, the losses may start knocking on significant’s door!
Dorsey’s Vision: A Future Beyond Cashing Out
Jack Dorsey, the CEO of Square, has big dreams for Bitcoin, describing it as a “transformational technology.” He believes Square is only scratching the surface with the buy/sell feature and hints at further developments. Whether that means adopting Bitcoin in new ways or perhaps incorporating it into your morning coffee order is anyone’s guess!
Stock Market Reactions: A Rough Ride for Square
Square’s stock doesn’t seem to be riding high either. After Citron Research, led by notorious short-seller Andrew Left, described Square’s business as a “collection of yawn businesses,” shares plummeted by 3.8%, dropping to $45.76. To make matters worse, their stock fell over 6% shortly after revealing lackluster first-quarter results. As it stands, Square’s shares are trading at $46.25. Let’s just say investors may not be reaching for popcorn anytime soon!
