On the contrary, it’s barely a money-making affair — but one generating lots of buzz and helping its more profitable digital money management and payments business continue its expansion.
Of the $5.06 billion in revenue generated in the first quarter, $3.51 billion was attributable to Bitcoin — a more than 1,000% increase from Q1 2020 when Bitcoin revenue was just $306 million.
And yet in spite of the epic rise, Bitcoin isn’t what’s paying the bills at Square that’s really moving the needle and generating progress for Square’s bottom line.
It’s all about the bigger picture for Square, which is generating lots of new user accounts by offering crypto trading through Cash App.
Longer term, if Bitcoin acceptance as a form of payment among businesses does continue to increase, Square will have the infrastructure and user base already built out to make it a top ecosystem from which merchants and consumers can interact using the digital asset.
When backing out Bitcoin results, Square sales tally up to $10.7 billion over the last trailing-12-month stretch — valuing the stock at just over nine times trailing-12-month sales.