Bitcoin support in the Square Cash app has helped boost stocks for Jack Dorsey’s payments platform as speculation around the year’s first quarter begins.
Square’s stock rose by almost 5 per cent at the end of Wednesday’s trading, leading to some very happy investors. The stock has advanced by more than 40 per cent year-to-date, and is currently trading over $51 per share.
Nomura Instinet analyst Dan Dolev said: “This can help offset rising investment costs required to broaden Square’s international presence,” referring to the company’s expansion over the last year and a possible 10 per cent adjustment to its EBITDA guidance.
Square said: “[Customers] can now buy and sell Bitcoin in Cash App. We observed that this was a feature our customers wanted, and we support Bitcoin because we see it as a step in the long-term path toward greater financial access for all.”
This quarter’s earnings report is set for May 2.