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> But I have no idea if people use that feature frequently. Looks like they made 4.57B$ in revenue with 97M$ in profit [1]. And "We’ve continued to see strong
by rawtxapp 6y ago
> But I have no idea if people use that feature frequently.
Looks like they made 4.57B$ in revenue with 97M$ in profit [1]. And "We’ve continued to see strong adoption, with 3 million customers [buying bitcoin] through the past year, and in January we saw 1 million new to bitcoin in just one month."
1: https://www.coindesk.com/square-cash-app-bitcoin-revenues-swell-785-in-2020 https://www.coindesk.com/square-cash-app-bitcoin-revenues-sw...
- tedunangst 6y agoIt's a bit odd to count that as revenue. Like Robinhood counting their entire trade volume of $350 billion as "revenue".
- rodonn 6y agoUnfortunately under US accounting rules you have to do it this way in your financial filings.
- woobar 6y agoBut bigger brokers (in fact, much more than just brokers) like Merrill ($18B) or Schwab($10B) do not report their transaction volume as revenue.
- wfleming 6y agoI'm having trouble finding a good citation, but I think the GP is referring to a quirk of US accounting rules that causes crypto trades specifically to be counted as revenue. The same does not apply to traditional financial market trades, which I think is what your numbers are.
- woobar 6y agoBut we are talking about Robinhood here. I doubt they trade $350B worth of crypto.
- skybrian 6y agoWeirdly, it seems there are no GAAP accounting rules for cryptocurrencies yet. Apparently there is informal guidance that it should be treated as an intangible asset: https://news.bloombergtax.com/financial-accounting/tesla-bitcoin-bet-exposes-limits-of-crypto-accounting-rules https://news.bloombergtax.com/financial-accounting/tesla-bit...