Square pulled in $37 million in revenue from Bitcoin, but spent $36.6 million to offer it on their Cash App, leading to a tight profit of $420,000. Although profitable, Square isn’t expecting cryptocurrency to drive major profits anytime soon.
Square initially added Bitcoin trading to the Cash App in January just before the cryptocurrency markets nosedived, driving many investors away from the volatile markets. The addition of Bitcoin allowed Square customers to easily buy and sell the cryptocurrency, but the layout of their trading system has negatively impacted their profits. In order to allow customers to instantly trade the digital currency, Square holds a certain amount of it in reserve, which can lose, or gain, value while sitting in reserve. So far, this has caused the company to lose money.