Bitcoin Helps Square Revenue to Soar

By Christiana Sciaudone — helped Square (NYSE:) publish jaw-dropping results for the first quarter, pushing shares up almost 7%.

Bitcoin revenue made up about 70% of the $5.06 billion total, which itself dwarfed the analyst average estimate of $3.32 billion, according to data compiled by Profit of 41 cents a share beat expectations of 17 cents. 

Of that $3.51 billion in bitcoin revenue, Square captured $75 million in gross profit during the first quarter of 2021, up approximately 11 times year-over-year. Bitcoin revenue and gross profit benefited from a year-over-year increase in the price of bitcoin, bitcoin actives, and growth in customer demand. “In future quarters, we recognize that bitcoin revenue may fluctuate as a result of changes in customer demand or the market price of bitcoin,” the company said in a statement. 

Square invested $220 million between the fourth quarter of 2020 and first quarter of 2021 in bitcoin, and noted a bitcoin impairment loss of $20 million on the investment for the first quarter. As of March 31, the fair value of the bitcoin investment was $472 million based on market prices, $272 million greater than the carrying value of the investment, Square said.


Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

READ  S&P Global to buy IHS Markit in all-stock deal worth $44bn

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Please enter your comment!
Please enter your name here