The US financial company Square Inc said that quarterly revenues doubled analysts’ expectations amid growing demand for cryptocurrencies.

Refinitiv, the global provider of financial data, expected Square to earn 16 cents a share in the first quarter of 2021, but the company took 41 cents a share in the end. Square revenue was $ 5.06 billion, beating Refinitive forecasts of $ 3.36 billion.

Bitcoin alone generated $ 3.5 billion in revenue – an impressive 1000% growth in just 12 months.

Square’s total quarterly profit increased by 79% from the year to $ 964 million. More than half of the company’s profits can be attributed to the cryptocurrency-friendly cash payment app, which generated a total revenue of $ 495 million – an increase of 171% during the first quarter of 2020.

While there were billions of bitcoin sales, the cryptocurrency accounted for 2% of the company’s total profit of $ 75 million.

“Bitcoin revenues and gross margins have been strengthened by annual increases in bitcoin prices, bitcoin activity and increased consumer demand,” the company said.

Speaking of profits and losses, Square CEO Jack Dorsey highlighted the company’s mission to support the conversion of BTC into the national currency on the Internet, saying:

“Our focus is first and foremost on making Bitcoin […] the national currency. This removes a lot of friction in our business. We are very confident that this creates more opportunities for economic empowerment around the world.”
Despite the prediction that the Cash App will continue to show triple-digit growth in 2021 compared to the same period last year, Square CFO Amrita Ahuja suggested that government incentives are likely to improve the recent performance of the payment app.

“We believe that our customers have more purchasing power than public funds, which led to an increase in flows in March,” he said, adding: “Since then, we have seen flows normalize by 16% in April compared to March. ”

Square became one of the first companies to invest part of its cash in Bitcoin when it bought 4,709 BTC for $ 50 million in October.

While the company’s first purchase of BTC is now $ 263.7 million, the company is down $ 20 million after another 3,318 BTC, which it bought in February for $ 170 million. The company currently has $ 472 million in BTC.