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Square has Bitcoin to thank for an impressive Q3 revenue

The payment service provider, Square, has published its third quarter report, which reveals that Bitcoin has earned them $43 million USD in revenue.

The third-quarter (Q3) shareholder report shows that the company has made 51% more than they did at this point last year, with a 68% improvement on revenue. Bitcoin (BTC) transaction sales make up 5% of Square’s revenue with $43 million USD. This, despite being one of the company’s smallest components.

Square is a mobile payments and services company based in San Francisco. They focus on providing payment services, mainly utilising digital apps and mobile card readers. Since their inception in 2009, they have made steps to become one of the most prominent payment processors of bitcoin.

The company’s main application, Cash App, allows people to transact currency digitally and also invest in the world’s largest cryptocurrency, bitcoin. They secured a patent for this service back in late August. This potentially secures them as main bridge between casually transacting fiat currency and bitcoin.

After adjustment, revenue for Squares third quarter comes to $431 million USD. They state that the adjusted figures reflect a deduction of bitcoin transaction costs. They comment on the reason they do this:

“We deduct Bitcoin costs because we consider our role in the bitcoin transactions to be facilitating customer access to Bitcoin. Since we only apply a small margin to the market cost of Bitcoin when we sell Bitcoin to customers, and we have no control over the cost of Bitcoin in the market, which tends to be volatile, we believe deducting Bitcoin costs is a better reflection of the economic benefits as well as the Company’s performance from the Bitcoin transactions”

Square has yet to make any other cryptocurrencies available on their service. If it decides to do so, the gains on its revenues can be expected to rise even higher. Greater margins could be made on cryptocurrencies that are generally more difficult for people to acquire with other means.