Square says it sold $34 million of bitcoin in first quarter

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Jack Dorsey, CEO of Square

Payments processing company Square said it sold a total of $34.1 million in bitcoin in the first quarter.

However, the company spent $33.9 million to buy bitcoin to allow people to trade it through its Cash mobile payments app. As a result, adjusted revenue from bitcoin was just $200,000.

Square, headed by Twitter co-founder Jack Dorsey, launched trading in the cryptocurrency through the Cash app in January.

On Wednesday, the company reported total net revenue of $669 million for the first quarter, a 45 percent increase from the prior year, and earnings per share of 6 cents that met expectations. However, shares tumbled 6 percent in extended trading on disappointing earnings guidance.

Bitcoin tumbled 50 percent in the first quarter to $6,926, according to CoinDesk. The cryptocurrency had recovered to near $9,100 Wednesday.