Payments firm Square said in its third-quarter earnings letter Thursday that its peer-to-peer payment service, Cash App, generated $1.82 billion of bitcoin revenue in the quarter and $42 million of gross profit, up 115% and 29% year over year, respectively.Bitcoin revenue and gross profit decreased in the third quarter versus the second quarter, however, Square said, citing the “relative stability in the price of bitcoin, which affected trading activity compared to prior quarters.”Square also noted bitcoin revenue and gross profit may fluctuate in future quarters given changes in customer demand and bitcoin’s market price. It said that may be particularly the case “as we lap strong growth rates on a year-over-year basis in the fourth quarter of 2020.”Square’s total net … [Read More...]
Coinbase Revenues Could Hit Nearly $50B by 2025, Investment Firm Says
Coinbase is the best-positioned cryptocurrency-related company to benefit from the industry’s soaring growth, Hayden Capital said on Monday in a memo on the crypto exchange.Coinbase could reach $49.2 billion in revenue exiting 2025 under a bullish outlook of mass crypto adoption, rising interest among institutional investors and the sector growing to $6.8 trillion in total size. Under a more conservative crypto market cap estimate of $3.4 trillion, the firm would more than double revenues to $21.3 billion by 2025.Hayden’s prediction for 2021 revenue of $8.8 billion is higher than other analysts’ estimates; Coinbase is projected to generate about $7 billion in revenue this year, according to FactSet estimates.Hayden Capital believes that Coinbase will hold its market share lead over other exchanges, while also fending off … [Read More...]
Robinhood Shares Fall as Crypto Trading Revenue Declines Sharply
Robinhood (NASDAQ: HOOD) shares fell about 8% in after-hours trading Tuesday after the zero-commission trading platform missed badly on revenue expectations as its cryptocurrency revenue fell sharply from the second quarter’s record high.Robinhood said its crypto revenues fell to just $51 million in the third quarter, down from a record $233 million in the second quarter. The company said the reduced crypto trading activity led to significantly fewer new funded accounts and lower revenue in the quarter as compared to the second quarter.Total revenue for the quarter was $365 million, short of analyst estimates of $437.1 million, according to FactSet. The company reported an adjusted net loss of $2.06 per share, versus analyst expectations of a loss of $0.67.Robinhood said that over … [Read More...]
AMEX CEO Says Crypto Is Unlikely a Threat to Traditional Credit Cards
Traditional credit card payments will hold firm amid the growth of cryptocurrencies, American Express CEO Stephen Squeri predicted on the company’s third-quarter earnings call Friday.Unlike crypto, traditional credit cards offer clients rewards, service, ability for disputing charges, along with the ability to extend credit, Squeri said.Squeri said he sees cryptocurrency much more as an asset class at this time, adding clients don’t use AMEX to “buy stock” and doesn’t see them focusing on buying crypto either.Squeri said he sees a role for digital currencies, however, adding they can make cross-border payments “a lot more seamless”Currently, AMEX’s biggest role in the space is in the NFT and stablecoins universes, Squeri said, citing the card’s usage to buy digital collectibles such as NBA Top … [Read More...]