The American company for payments, Square Inc., published this Thursday, May 6, the financial results of the first quarter, in which it reported a 79% increase in gross profits, which reached USD 964 million. While Square’s net earnings totaled USD 39 million, its treasury reserve appreciation in bitcoin was 114.5%, equivalent to USD 272 million.
The Cash App was responsible for much of Square’s growth in the first quarter, the company said in the letter to shareholders, detailing financial results. Cash App revenue for the period was $ 4.04 billion, with $ 495 million in gross profit. 86.8% of Cash App revenue, or $ 3.51 billion came from the sale of bitcoin , with gross proceeds of $ 75 million.
Bitcoin investment progress
Square was the second company to invest in bitcoin, as a cash reserve, after MicroStrategy. The company led by Jack Dorsey made a first bitcoin acquisition of USD 50 million on October 8 for 50 million, and a second purchase of USD 170 million, on February 23.
The The company states in the letter to shareholders that, during the first quarter, it recorded a loss of USD 20 million. “As of March 31, 2021, the value of our investment was USD 472 million, which is USD 272 greater than the initial value of the investment.”
It is well known that while net earnings of its operation in the first quarter were USD 39 million, an amount almost 7 times less than the appreciation of its bitcoin reserves .
According to BitcoinTreasuries.org, the value of Square’s reserve at the time of writing this article is $ 460.86 million at the bitcoin price of $ 57,587, in Messari figures.
