![Square's Cash application sold more than 166 million dollars in Bitcoin [BTC] in 2018](https://crypto-economy.com//wp-content/uploads/2019/07/cash-app.jpg)
Square, the American-based Fintech company led by Bitcoin believer and Twitter CEO Jack Dorsey released its annual earnings report on Wednesday, February 27th and the figures are impressive for a company its size.
Square, a payments company launched its Cash App (a competitor to PayPal’s Venmo) to enable Bitcoin purchases for its clients back in the run-up to the December 2017 bull run. According to the earnings report released on Wednesday, the Cash App facilitated the purchase of $166 million worth of Bitcoin, with $52.5 million (about 13,684 BTC) of that figure being sold in the last quarter of 2018.
The Cash App figures Q4 sales increased a massive 70% from its Q3 sales and 200% over its Q1 sales. This shows that despite the bear market, the Cash App’s sales were on the rise quarter over quarter.
Now, $166 million may seem like a drop of water in the ocean but it is worth considering that dollar amounts injected into the cryptocurrency space often have a multiplier effect which means that the $1 million could double, triple or even 100X depending in which digital asset it is invested. Alex Kluger, a market researcher with JP Morgan has stated previously that for Bitcoin, a multiplier effect of at least 117.5 is present, however, this figure may be based on Bitcoin’s earlier days.
Researchers at Citigroup have also estimated the same figure to be 50, while crypto-economist Chris Burniske of Placeholder Ventures has estimated the same figure to be in the ballpark of between 2 and 25. Going with those latest numbers, the Cash App sales could have led to the injection of between $300M and $4 Billion into the crypto space, not a small amount after all.
Surprisingly though, the firm actually holds a “very small amount” of Bitcoin according to the company’s CFO Amrita Ahuja who was speaking during the earnings call. Holding some crypto helps to “add a little bit of liquidity but our intent is not to hold a lot on the balance sheet,” she explained.
