The new oil —Bitcoin
Bitcoin at it again. If we remove the bitcoin top line from Square’s quarter, the company posted $1.55 billion in revenue, a figure that was up 44% compared to its year-ago period. That’s impressive. But the company’s bitcoin-related revenue growth was far more so. From $306.1 million in Q1 2020 to $3.5 billion in Q1 2021
From Tesla to Square, who's next?
Shares of square are up more than 6% today after the American fintech company reported a staggering $5.06 billion in revenue in its Q1 2021 earnings report, far ahead of an expected tally of $3.36 billion.
By posting the huge revenue beat, Square grew 266% compared to its year-ago Q1. Because that’s the sort of growth that we generally expect to see from early-stage startups instead of maturing public companies, some exploration is in order. In short, bitcoin revenues from Square, and how they fit into its accounting, are responsible for much of its outsized growth.
And that’s something we need to talk about.
