Twitter and Square CEO Jack Dorsey, has been pushing bitcoin adoption on his platforms; making it easy to purchase with CashApp and tweeting to his 4.3 million followers about the tech. It has clearly been paying off.
- Square Cash app posted $148 million in Bitcoin sales in Q3 2019, an increase of 245% from Q3 2018
- Out of $1,800 New BTC mined each day, 155 is Grabbed by Square users
- A new fee structure for BTC purchases is also introduced
Jack Dorsey’s Square Cash App posted another record quarter.
For the third quarter of 2019, Square posted $148 million in quarterly Bitcoin sales, marking the 6th straight quarter of growth.
$148 million in sales has been an increase of about 20 percent from last quarter and a whopping 245 percent from Q3 2018.
“First-time bitcoin buyers have approximately doubled,” read the investor letter published on Wednesday.
In its Q3 earnings call today, the company reported $2 million in profits on the $148 million in Bitcoin sales last quarter.
Out of 1,800 New BTC mined each day, Square users Grab 155 BTC
In Q3, Bitcoin price went from $10,500 to $8,100, while climbing to as high as ~ 13,200 and falling to as low as $7,700, though momentarily. Having the average BTC price to be about $10,200 in Q3, it can be estimated that the total amount of Bitcoin sold through Cash App was ~14,200 BTC.
By this calculation, Square users are buying on an average of 155 BTC per day. This means, out of the 1,800 new BTC mined each day, more than 8% of daily issuance is consumed by square Cash app users.
As Bitcoin enthusiast Rhythm Trader says, “Demand for bitcoin can’t be ignored by other companies for much longer.”
Square Cash App Not Free Anymore
The Cash App has also started charging fees of 1.76% on Bitcoin purchases with the website stating,
“Cash App charges two kinds of fees for bitcoin transactions: a service fee for each transaction and, depending on market activity, an additional fee determined by price volatility across U.S. exchanges.”
As of September, there were no fees, on buy, sell or conversion of BTC purchases on the app. Reportedly, previously, the fee was included in the spread but now for user transparency, it has been excluded out of the spread.
In comparison, the leading US cryptocurrency exchange Coinbase charges a flat 1.49% fee for larger purchases. For a transaction amount less than $10, the fee is $0.99, from $25 to $50 the fee is $1.99, and from $50 to $200 it charges $2.99.
Just last month, Coinbase CEO Brian Armstrong announced that the company earned over $2 million in transaction fee revenue since its launch in 2012.
Square meanwhile is also rolling out a new feature in cash App that will allow users to purchase equities with no fees for stock purchases.