Square Earned $37 Million From Bitcoin Trading in Q2
— Square IR (@SquareIR) August 1, 2018
It was a strong quarter for Square with adjusted EPS beating estimates ($0.13 vs. $0.11) and revenues up nearly 5% from expectations ($385 million vs. $368 million). Total net revenue was $815 million in the second quarter of 2018, up 48% year over year.
While Bitcoin revenue is up quarter over quarter, Square net less than $1 million from the new trading feature as the cost of Bitcoin operations was $36,596,000 for the quarter. This has been the largest critique of the company, as the current margins on its cryptocurrency activities are not yet there.
However, given the current regulatory landscape, these costs are likely related to investments in state and federally licensing efforts. For example, in June, Square notably became the 7th company to received a ‘BitLicense’ from New York state for cryptocurrency transactions within Square Cash.
The share price of Square has been on an absolute tear over the last year, up nearly 200% due largely from consistent earnings beats and bullishness over the company’s new focus on cryptocurrency.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.