Payment company Square Inc (SQ.N) easily surpassed Wall Street’s quarterly profit expectations on Thursday, as the surge in demand for Bitcoin drove a jump in cryptocurrency transactions for its peer-to-peer payment service Cash App.
Excluding one-time expenses, the payment company led by the top boss of Twitter (TWTR.N) Jack Dorsey (Jack Dorsey) earned 41 cents per share. According to data from Refinitiv IBES, analysts expect an average of 16 cents per share.
Cash App’s most popular cryptocurrency reached a market value of $1 trillion for the first time in a quarter, generating $3.51 billion in Bitcoin revenue, an 11-fold increase over the same period last year.
Dorsey told analysts on the earnings call that the company views Bitcoin as “the Internet has the potential of its own currency.”
He said: “This will be a long-term focus to make Bitcoin a national currency. It eliminates friction in our business, and we fully believe that this will create more opportunities for economic empowerment worldwide.”
Thanks to the support of top companies including Tesla Inc. (TSLA.O), the value of Bitcoin has soared this year.
San Francisco-based Square said in February that it had invested $170 million in Bitcoin, raising its stakes from $50 million in the fourth quarter of 2020.
Driven by the COVID-19 pandemic forcing people to stay at home and shop online, the shift to digital transactions has also boosted the company’s revenue.
Total payments in the first quarter (measured transactions processed on the Square platform) increased by 29% to $33.1 billion.
Total net income jumped nearly four times to reach 5.06 billion U.S. dollars.
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