According to cryptanalysis firm Messari, financial services giant Square has purchased approximately $1.5 billion worth of BTC in the past 12 months to meet massive customer demand for its mobile payment app.
Most of these BTC purchases took place in the last quarter, when the Bitcoin price clearly outperformed many traditional assets and outperformed long-established and crisis-proof assets. In any case, Square’s cash app reports that $858 million worth of BTC was purchased between April and June. This represents an increase of more than 186% over the 1st quarter’s BTC purchases of almost $300 million and underlines the fact that Bitcoin is becoming increasingly popular as an asset.
The fact that customers can buy Bitcoin via the cash app seems to have paid off for the financial services provider. According to Square, the app saw a massive increase in BTC sales and gross profit in the second quarter of 2020.
Cash App generated $875 million in Bitcoin sales and $17 million in Bitcoin gross profit in the second quarter of 2020, an increase of 600% and 711%, respectively, over the previous year.
In May, Square’s app enabled a new feature that allows users to make automatic and recurring Bitcoin purchases. Users can set the app to make BTC purchases on a regular schedule and have the ability to display the value of their crypto assets in sats (Satoshis), the smallest unit of Bitcoin. This allows Square’s customers to even use proven investment strategies such as our Bitcoin Savings Plan, while ensuring continued demand, which in turn could provide the Bitcoin price over time as the foundation for its next bull run.
Offering major payment providers to offer their customers the purchase of cryptocurrencies is a trend that is growing. This kind of service is also something that is expected from PayPal soon. According to the rumour mill, this payment giant could soon offer its 300 million users the crypto trade and perhaps the opportunity to buy Bitcoin.