The quarterly earnings of Square Inc. have exceeded the expectations of the analysts with more than double revenue, thanks to Bitcoin. Square Inc. is a financial services firm based in the U.S.A. This was the first firm to invest in Bitcoin after purchasing 4,709 Bitcoin worth $50 million in October.
The significance of Bitcoin and other cryptocurrencies cannot be denied as the demand for digital assets is growing, giving rise to beneficial opportunities in the future. This is encouraging news for both existing investors and traders of Bitcoin and an indication for the interested parties to start investing in Bitcoin and also consider trading. People looking to invest in Bitcoin can use SwissBorg exchange or Kraken, which are reliable.
Bitcoin Increases Square’s Revenue up to 1000%
Square was expected to see earnings of 16 cents per share in the first quarter of 2021, according to the global financial data provider Refinitiv. However, Square ended up with earnings of 41 cents per share, thanks to Bitcoin.
Square’s revenue was recorded to be $5.06 billion, which significantly dominated Refinitiv’s prediction of $3.36 billion.
Out of the reported revenue of the company, $3.5 billion was driven up by Bitcoin alone,which is an incredible increase of 1000% in only 12 months. The quarterly gross profit of the company was noted to be $964 million, which is an increase of up to 79% year-over-year. The credit of more than half of Square’s profits goes to Cash App, the company’s crypto-friendly payment application, which alone drove the gross profits to $495 million.
Company’s Mission to Support Bitcoin
“Bitcoin revenue and gross profit benefited from a year-over-year increase in the price of Bitcoin, Bitcoin activities, and growth in customer demand,”
The CEO of the company, Jack Dorsey, stressed their mission to support Bitcoin during an earnings call and stated:
“Our focus, first and foremost, is on enabling […] Bitcoin to be the native currency. It removes a bunch of friction for our business. And we believe fully that it creates more opportunities for economic empowerment around the world.”
The company currently holds Bitcoin worth $472 million in total, after it made another purchase of 3,318 Bitcoin worth $170 million in February.
What Could it Mean for Bitcoin Investors and Traders?
Digital currencies are known to be volatile, yet the recognition and utility of Bitcoin and other cryptocurrencies are undoubtedly growing. This is good news for the existing investors and traders of Bitcoin as well as the people who soon plan on stepping into the crypto world.
Bitcoin has been the top cryptocurrency, regardless of the rise and fall in its price observed over the last few months. Keeping this in mind, Bitcoin investors and traders can be confident that its value will continue to increase in the future. Therefore, this can be a good opportunity for the interested parties to start trading or investing in Bitcoin by using the safest crypto exchanges.
If you are looking to buy Bitcoin then you can use SwissBorg or Kraken. However, if you are more interested in trading Bitcoin then you can use ByBit exchange for crypto trading and PrimeXBT Covesting for copy-trading.