Is it odd that square is counting bitcoin exchange as revenue? Does that make SQ way overvalued today? From an accounting perspective it’s fine since they record the exchange as a sale of a bitcoin and then turn around and buy to cover. Feels misleading
I mean, they made money off it. Would it be weird if a bank reported this?
Yes then the fees should be reported on not the actual sale of the bitcoin.
This is a reporting requirement explicitly required and forced by the SEC due to BTCs classification as property. Not much else to it.
Sure. Not saying it’s illegal it’s just misleading
Sure but there is nothing Square can do about it since SEC enforces it. The earnings report does call out just the bitcoin profit separately I think, which is as clear as Square can make it while following the rules.
Was that the money they made off of bitcoin transactions within cash app or their own btc purchase?
Let’s say I buy $1000 worth of bitcoin on cashapp. Now that $1000 is counted as revenue on their p&l
Hmm interesting
@flexport - do you review reports for all your watch list . Must say this is a good idea , would love to see your posts if you’d wonder time reviewing stocks
Yes, unless you’re investing in indexes spend some time reading the 10K and investor relations deck before investing. I was considering sq to buy considering the hype in fintech but after seeing this I will not invest anymore. I might be wrong, I might be right do your own research.
Yeah it’s sketch. Classic