via Square

Shares of payment processing company Square (SQ) spiked midweek following an analyst’s report predicting a major first-quarter earnings boost as a result of the company’s bitcoin adoption.

In the report, Nomura Instinet analyst Dan Dolev predicts that the inclusion of bitcoin trading on Square’s platform will result in a “sizable boost” to the company’s revenue and profits this quarter. Additionally, he anticipates a 10% potential upside to adjusted EBITDA guidance.

Bitcoin trading on Square Cash kicked off on Jan. 31, and Dolev said additional revenue per user could amount to $125 every year. According to Dolev, “about 2-6% of Square Cash app users trade bitcoin, which brings a 1-3% percent boost to adjusted revenue and as much as a 10% boost to adjusted EBITDA.”

Square founder and CEO Jack Dorsey is on record last month stating that bitcoin is likely to become the dominant form of payment in the next ten years. “The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be bitcoin,” he stated in an interview with The Times of London.

cnbc.com

Dolev, who has 65% prediction success rate, sees a $64 price target for Square in the next year, representing a 30% upside from Thursday’s close. Square shares are up 173% over the past 12 months.

More: Square stock jumps 5 percent after analyst predicts ‘sizable boost’ in its earnings report from bitcoin trading
Referenced: Twitter CEO Jack Dorsey Predicts Bitcoin Will Become the World’s ‘Single Currency’
Voyager

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.