Why Square Inc (NYSE:SQ) Stock Doesn’t Need Bitcoin (BTC) $BTC

Square Inc (NYSE:SQ) has been growing quite nicely, despite the weakness in Bitcoin (BTC) price over the last several months. Its digital payments app, Cash app, which also allows cryptocurrency trading, has been holding its own despite the continued weakness in the price of Bitcoin (BTC). After topping $10,000 in March, the price of Bitcoin (BTC) has yet to return to that level, instead, it’s hovering around $7,000 since the start of June.

Square Inc (NYSE:SQ) doesn’t need Bitcoin (BTC)

While a strong Bitcoin (BTC) price and the wide-spread adoption of cryptocurrency for Square Inc (NYSE: SQ), it’s not necessarily needed. The payment app company has been growing its Cash app nicely. What makes Square Inc (NYSE: SQ) most interesting is that it’s not beholden to the price of Bitcoin (BTC), but it does have a first-mover advantage over other payments companies, and its app is growing faster than the major competitor, PayPal (NASDAQ:PYPL)’s Venmo.

Part of the strong download growth is from the fact that you can trade crypto right from the Cash app. I’ve talked about SQ as an underrated Bitcoin (BTC) play in the past. But even with the early summer Bitcoin (BTC) woes, Cash app download growth outpaced Venmo by three times in May and June. Growth in downloads for the Cash app was up over 150% year-over-year in May and June. Part of that could be the fact that New York approved cryptocurrency trading on the Cash app in June.

Top in the industry, opportunities remain

The case for Square Inc (NYSE:SQ) gets more compelling when you consider the fact that while Coinbase downloads have stalled, falling 39% in June as Bitcoin (BTC) prices retreated. Square Inc (NYSE:SQ) offers a digital payment app and crypto trading, so it will capture upside from Bitcoin (BTC) adoption, but it’ll also continue to do well from the shift away from banks and toward digital payments.

Square Inc (NYSE:SQ)’s Cash app is quickly becoming the top mobile payments app out there. It’s closing in on overtaking Venmo in total app downloads and should pass them by July. Nothing new has come to market to suggest that Square Inc (NYSE: SQ) can’t keep growing. Its got that first-mover advantage when it comes to cryptocurrency trading from within a digital app, and there are a few levers it could pull for growth. 

These include allowing customers to actually use the Bitcoin (BTC) it trades to purchase goods. Imagine, effectively, and seamlessly being able to buy groceries with the Bitcoin (BTC) you own. Unlike PayPal (NASDAQ:PYPL), Square Inc (NYSE:SQ) is smaller and more nimble. PayPal (NASDAQ:PYPL) trades with a $102 billion market cap, while Square Inc (NYSE: SQ) comes in at $25 billion. The key is that Square Inc (NYSE:SQ) keeps innovating. 

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