Payment firm Square reported first-quarter earnings that beat analyst estimates on Thursday, powered by surging demand for bitcoin. Quarterly revenue from bitcoin also grew eleven times to $3.5 billion, from $306 million a year ago, the payment company revealed in a shareholder letter. But gross profit from these transactions was only $75 million, or about 2% of bitcoin revenue, making up Square’s fee generation from sales.
Quarterly sales for the digital payments firm came in at $5.06 billion.
Overall quarterly sales for the crypto payments firm came in at $5.06 billion, beating analyst forecasts for $3.37 billion. Net income for Q1, 2021 was at $39 million, or 8 cents per share. Gross profit more than doubled by rising 79% year-on-year to $964 million. Square announced a boosted bitcoin stake in February, having invested an additional $170 million. That accounted for about 5% of its total cash, cash equivalents, and marketable securities. With that investment, Square bought an additional 3,318 bitcoin at an average price of $51,235.68. Jack Dorsey-led firm bought 4,709 bitcoin for $50 million in October 2020, currently worth about $263 million.
Square now holds $448 million worth of bitcoins.
Square now holds 8,027 bitcoin, according to bitcointreasuries.org, worth about $448 million. That makes it the third-largest publicly traded holder of the leading cryptocurrency after MicroStrategy and Tesla. We see bitcoin as the internet’s potential to have a native currency, and we want to further that as much as we can,” CEO Jack Dorsey said during an earnings call. “Our focus is enabling bitcoin to be the native currency. It removes a bunch of friction for our business, and we believe fully that it creates more opportunities for economic empowerment around the world,” he added.