Square: Credit Suisse Analyst Says Company Will Make $30 Million From Bitcoin

Credit Suisse
On November 15th, Square Inc announced they would begin testing the support of Bitcoin through its Cash payments app. According to Paul Condra of Credit Suisse, Square can add tens of millions to its revenue with their Bitcoin exploration. In a note to his clients Monday, he stated: "While we are positive on Square's strategy, to the extent it confers legitimacy on Bitcoin and prompts adoption by other providers (i.e., PayPal) the biggest beneficiary may be the crypto-asset industry. We estimate that if Square can accumulate 10m bitcoin buyers over two years (tracking Coinbase's growth), this could drive an incremental $30m in revenue” That figure stems from the belief that Square will charge a fee of 1.5 percent each transaction and on average, Condra estimates a customer would spend around $200 annually on bitcoin purchases. The Credit Suisse analyst echoed his neutral rating and increased his price target from $37 to $31. Following this report, Square’s shares closed at just under a 3 percent increase. Featured Image: twitter

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