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Square sold more than half a billion dollars in Bitcoin in 2019, the growth of cryptocurrency trading volume skyrocketed in the fourth quarter.

    Square payment and mobile financial services firm reported Q4 earnings on Feb. 26, recording a record quarter of Bitcoin purchase volume.

    Square said the volume of Bitcoin purchases in Q4 reached more than $ 178 million. In 2019 in general, Bitcoin sales are worth more than $ 516 million, i.e. $ 8 million of gross profit – less than 2% of gross profit from transaction and registration services.

    bitcoin

    While this volume of Bitcoin is nothing compared to larger exchanges in the United States, the increase in Bitcoin demand in Square is actually more than Coinbase (40% Q / Q reduction), Gemini (60% Q / Q reduction), and Kraken (up 10% Q / Q) in Q4. Figures refer to The Block's analysis using CryptoCompare's data.

    Square's volume is similar to Binance U.S., nearly $ 250 million in Q4.

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    The ability to buy Bitcoin is one of the features that has been included in the Cash App, all of which aim to provide greater financial access and, most recently, the ability to buy retail stocks of public companies.

    In its Q4 shareholder letter, Square said "within the first 3 months of its launch, equity investment was the fastest accepted on any product launched by the Cash App. Thus, customers are taking advantage of the ability to buy odd shares. The average customer buys about $ 20 in stock at a time. "

    The ability to cross-sell other products such as in stock exchanges and traditional banking services is something that pure U.S. retail exchange applications like Coinbase currently lack. It also provides a competitive advantage in driving revenue per user for retail brokerage apps that currently do not offer the ability to buy or sell Bitcoin.

    In the Q4 earnings report, Jack Dorsey said that Cash App users generate more than $ 30 in annual revenue for each user calculated only in December, with "Bitcoin stimulating generating 2-3 times annual revenue. times compared to other cash customers ".

    Square noted in the Q3 Investment Letter that redesigning the Cash App to add stock transactions helped to roughly “double” the number of first-time Bitcoin buyers on the app within 30 days after the redesign.

    Dorsey cites previous reports that the company is making rapid progress to ensure “quality” for its customers, stating:

    "Bitcoin doesn't just buy and sell for us, we believe it is technology that transforms the industry and gives people more access to the financial system, so we always have learn from and lead the industry from here. "

    Thuy Trang

    Bitcoin Magazine | The Block Crypto

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