U.S. financial services company Square revealed it generated $43 million in Bitcoin revenue for Q3 2018

Square (SQ) reported earnings after the close on Wednesday, revealing that the company earned $43 million from its Bitcoin trading feature in its peer-to-peer money transfer appSquare Cash.

According to the third quarter report, Square posted earnings of $0.13 per share vs. expected earnings of $0.11 and revenue of $431 million vs. forecasted revenue of $413.9 million. Square Cash, a money transfer app that enables Bitcoin purchases, also reportedly surpassed PayPal’s Venmo in total downloads during the quarter.

While Square had a record quarter in terms of Bitcoin revenue, the operational cost for that revenue was $42.4 million, leaving a profit of only $555,000. However, Bitcoin trading was just recently expanded to users in all 50 states, and adoption of the app continues to improve.

“We do see people use the Cash App fundamentally as you would expect them to use a bank account,” Square CEO Jack Dorsey said. “They store money with us, it’s accepted anywhere Visa is accepted. They can send and receive money from friends and family.”

Last quarter, it was revealed that Square leverages private, over-the-counter (OTC) trading desks as opposed to the open, public exchanges for its bitcoin liquidity.

SQ via Google Finance

Following the earnings call, Square shares are down 5% in pre-market trading to $78.60. Despite the recent pullback, the stock is still up over 50% on the year.

Also read: IBM and Seagate have announced a joint initiative to fight counterfeit hard drives using Blockchain technology

Source: https://sludgefeed.com/square-reports-43-million-in-q3-bitcoin-revenue/