According to a blog post by The Block, Square, the San Francisco based financial services merchant services aggregator and mobile payment company, has ‘reported earnings for the fourth quarter that beat analyst expectations for earnings and revenue.’ This is because guidance for the first quarter and revenue were weaker than expected. As per the blog post;
“The shares were down 6 percent at $74 per share in after-hours trading. Last year, the firm enabled Bitcoin buys and sells on its Cash App platform, a rival to PayPal’s Venmo. Still, despite Dorsey’s bullish stance on Bitcoin — the billionaire has said Bitcoin could be the future of money — Square does not hold that much Bitcoin on its own balance sheet, but did however make approximately $1.7 million in net profit trading Bitcoin during the year, according to company filings.’’
Compared with Refinitiv consensus estimates, the company reported earnings of 14 cents per share vs. 13 cents per share –a 6-cent bump from last year and brought in adjusted revenue of $464 million vs. $454 million for the 4th quarter –a 64% rise within a year.
Jack Dorsey, the Twitter CEO that runs Square, stated that more than half of the platform’s adjusted revenue came from products that were launched in the last five years. Dorsey said that;
“People are utilizing the money they have in Cash App with friends, families and landlords, causing another download, and another, into the network.”
As per estimations made by FactSet, Square has an average overweight rating and $79.59 price target.
Over $166M Worth of BTC Sold in 2018
Reportedly, the dollar value of Bitcoin purchases grew quarterly by 22% from Q3, equivalent to a growth of 52% since the first quarter. The amount of Bitcoin (BTC) bought, increased by 70% between Q3 and Q4, and increased by almost 200% since the first quarter. This sums up the company’s BTC sales for 2018 to over $166 million. This quarter the company has sold BTC worth $52.5 million.
Dorsey strongly believes that this huge sale is a ‘transformation technology’ that grants the world more access to financial institutions. According to him, the internet deserves a native currency and he hopes this native currency is Bitcoin.
Crypto is Coming!