Payments giant Square is reporting a surge in Bitcoin (BTC) trading on its popular Cash App.
In a new investor conference call, Square’s chief financial officer, Amrita Ahuja, says the company has seen “very strong engagement” on its Bitcoin product in the past few weeks, amid extreme volatility in both traditional and crypto markets.
“Adoption and engagement of fractional equity investing in Bitcoin has accelerated in recent weeks given recent market interest and volatility.”
The king cryptocurrency plummeted alongside equities this month, as the economic fallout from the coronavirus outbreak. Bitcoin nosedived from nearly $8,000 to below $4,000 in a span of 48 hours. Despite the wild swings sparked by pandemic, Ahuja remarked that some Cash App users took advantage of the recent Bitcoin crash.
“Bitcoin and equity investing have seen strong volumes and adoption given the buying opportunity that some of our customers perceive in the market.”
Square chief executive Jack Dorsey echoed Ahuja’s observations, saying,
“We’re seeing strong engagement and volume for Bitcoin.”
In the fourth quarter of 2019, Square reported that it sold $178 million worth of Bitcoin, which represents quarter-over-quarter growth of more than 313%. All in all, Cash App generated $516 million in Bitcoin revenue, amounting to $8 million in gross profit in 2019.
The San Francisco payments company began offering Bitcoin buying and selling for its Cash App users in the US in August of 2018.