US payment processing company Square recently reported low profits from BTC trading on Cash App last quarter, according to Fortune.
According to Square's earnings report, Bitcoin business accounted for about 5% of total revenue at $34.1 million. The amount of profit from trading Bitcoin barely covered the funds spent on acquiring the platform. The profit was $200,000 or 0.6% of the $33.9 million spent.
The Cash App allows instant fiat transactions and withdrawals, and in November 2017 they announced the addition of a Bitcoin buy/sell feature for some users. Bitcoin trading on the platform officially began on January 31, just a week before its price dropped to $6,800.
Square is actually losing money in the cryptocurrency business, according to Fortune. Square's management is aware that they are losing money trading Bitcoin, but they don't see it as a cause for concern. The report said:
“Losses incurred due to Bitcoin trading over the past three months were insignificant.”
In February Jack Dorsey, CEO of Square, said the company would continue to engage in Bitcoin trading and said that Bitcoin “is a technology has the potential to transform our industry and needs to be learned and mastered as quickly as possible.”
On May 1, Cointelegraph reported that Square's share price fell 3.8% to $45.76 after seller Andrew Kitron tweeted that their app was “completely unrelated to Bitcoin trading.”
According to CNBC, Square's stock fell more than 6% after reporting its first-quarter results. At the time of publication, Square's share price is $46.25
According to https://cointelegraph.com
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