Square Inc. published its annual earnings report yesterday and revealed a $170 million Bitcoin purchase at an average price of $51,235.

Bitcoin Propels Square’s Revenue

Fee earnings from the purchase and sale of Bitcoin on Cash App continue to be the primary income source for Square Inc. Cash App’s monthly active users reached 36 million, a 50% increase year-to-year.

Bitcoin accounted for 48% of Square’s total revenue of $9.5 billion last year. The revenue from Bitcoin increased nine times from last year; Square made 2% of the revenue in profit of $100 million.

The year’s net profit was $215 million, with an earnings per share (EPS) value of $0.84. Square Inc. stock has increased by 315% since the beginning of 2020, from $62.5 to $256.5.

The finance app saw robust growth in crypto trading since the last quarter of 2020, adding $1.8 billion to the company’s revenue in Q4 2020. The report also cited that: 

“In January 2021, more than one million customers purchased bitcoin for the first time.”

In the last quarter of 2020, the company made a net profit of $294 million, of which investments accounted for $274 million or 93%.

Square’s earlier Bitcoin investment from September of $50 million is worth over $240 million. It added $170 million BTC during the dip in the last two days.

The financial services firm now owns 8,807 BTC, bought at an average price of $25,000.

The Bitcoin investment revelation at the end of yesterday’s tumultuous price action instilled bullish strength in back in the asset. The premier cryptocurrency regained $50,000 level, rising from 3.5% on an hourly scale after the announcement.

Disclosure: The author held Bitcoin at the time of press.