Analyst says Square's competitors are behind when it comes to bitcoin

Square’s Competition “Stuck in the Past” Regarding Bitcoin, Says Wall Street Analyst

Nomura analyst Dan Dolev, a Wall Street analyst that’s bullish on payments company Square, recently stated that its competitors are “stuck in the past” when it comes to bitcoin and other cryptocurrencies.

In an interview with Business Insider, the Wall Street analyst revealed that he sees Square as a pioneer in the payments field, as the company’s Cash app allows users to buy and sell bitcoin. The company’s competitors, Dolev added, have barely begun to discuss the cryptocurrency.

Square is notably run by Twitter CEO Jack Dorsey, who recently told analysts on the company’s fourth quarter earnings call that the company won’t stop with bitcoin buy and sell options, implying the Cash app will bring in more cryptocurrency-related features. He added that the company believes “this is a transformational technology for our industry and we want to learn as quick as possible.”

While reports suggest adding bitcoin hasn’t done much for Square, the company beat expectations, as it earned an adjusted $0.08 per share, as opposed to the expected $0.067. Taking this into account, Dolev added:

“It’s also smart on Square’s side because they’re first to the debate,” Dolev explained to Business Insider. “It kind of epitomizes, without naming names here, that some of their competitors are stuck in the past whereas Square is forward thinking.”

The analyst’s price target for Square’s stock was of $64, a significant increase over its current $45 price tag. Dolev sees the company’s value rise substantially, partly because its innovation is set to allow it to become “a bigger part of the overall financial ecosystem.”

Square’s history with bitcoin

Square’s Cash app recently started allowing users to buy and sell bitcoin. The company’s CEO, Jack Dorsey, has been known to be a bitcoiner and has revealed that he would “love to see a digital currency thrive.”

In a recent annual filing with the U.S. Securities and Exchange Commission (SEC), Square revealed that businesses dealing with cryptocurrencies may face potential risk, as the accounting rules are unclear and the country’s accounting standard for public companies offers no specific guidance.

The document even suggests auditors or regulators could disagree with how the company accounts for cryptocurrencies. It reads:

“The accounting can be complex and subject to challenge or scrutiny. The final conclusions on the accounting treatment for our cryptocurrency transactions could affect the presentation of our results of operations.”

Additionally, Jack Dorsey’s company revealed it doesn’t see itself as a company offering its customers securities, meaning it shouldn’t be regulated as such.