Square, a company specialized in mobile payments, has recently stated that it has produced $37 million in profits in the second quarter resulted from selling bitcoin on its platform.
Square, Inc. is a financial services provider, trading services aggregator, and mobile payment company headquartered in San Francisco, California. The company was established in 2009 by Jack Dorsey, the co-founder and CEO of Twitter, and Jim McKelvey and its first app and service were officially launched in 2010.
On Wednesday, the company made public an unaudited quarterly financial report and showed it managed to rake in an overall net revenue of $814 million. 6 percent of it resulted from their cryptocurrency acquisition service that was made available through the Cash App which was released late last year.
However, seeing as the costs required for making possible bitcoin purchases added up to more than $36.5 million in the same time frame, the report pointed out Square again reserved for its bitcoin service a small margin of $420,000.
It should be noted that the firm’s bitcoin sales revenues have increased twofold in size since its first quarter, which according to a report from CoinDesk, was estimated to be near $223,000.
In the meantime, Square revealed that as of June 30 the carrying value of bitcoin held by itself was $0.4 million. On Wednesday in a conference call, Sarah Friar, the chief financial officer of Square said the objective of the bitcoin purchase service on the Cash App involved not “trying to push on the monetization of bitcoin today.”
The service was added in November in a testing phase and was officially launched for the public in January, which enabled users from all states in the U.S. to perform transactions with bitcoin. In June, regulators in the state of New York gave Square its BitLicense.
