Square Reports More than $166 Million Revenue from Bitcoin Sales in 2018

Square, a mobile payments company, has published more than $166 million in revenue from bitcoin sales in 2018.

The firm filed its Q4 2018 financial results with the U.S. Securities and Exchange Commission (SEC) on February 27, stating that it gained a total of $3.3 billion net revenue last year, 5 percent of which came from gains from Cash App, its cryptocurrency buying service.

Although bitcoin sales amounted to exactly $166,517,000, the cost of buying the digital currency for the year was around $165 million. This gave the company a net profit of $1.69 million from bitcoin sales.

Notably, Square’s bitcoin sales were better during the second half of 2018 based on its quarterly figures.

The company particularly gained $71 million in bitcoin revenues in the first half, while the second half brought in $95 million. First half’s profit amounted to $643,000 and the second half was $1.047 million.

Furthermore, the company revealed that as of December 31, 2018, the carrying value of bitcoin held by the company was $200,000. The company stated it evaluates the carrying value at each reporting date and registers an impairment charge if the carrying value is greater than the fair value. Nevertheless, loss on bitcoin last year was “insignificant.”

In November 2017, Square introduced bitcoin buying and selling feature to its Cash App to a limited number of users. The company enhanced the facility to include all 50 U.S. states in August 2018. Last June, the company was granted a “BitLicense” from the New York Department of Financial Services (NYDFS), thereby officially allowing it to provide crypto services in the state.