Square’s quarterly profit jumps on bitcoin rise

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Jack Dorsey, CEO of Square and CEO of Twitter, speaks in an interview with CNBC following the IPO of Square Inc., on the floor of the New York Stock Exchange on November 19, 2015. REUTERS / Lucas Jackson

Nov. 4 (Reuters) – Square Inc (SQ.N) on Thursday announced a nearly 60% increase in third quarter gross profit, fueled by an increase in bitcoin transactions on its peer-to-peer payment service Cash App.

The payments company, which acquires Buy Now, will later pay pioneer Afterpay Ltd (APT.AX) for $ 29 billion, posted gross profit of $ 1.13 billion in the quarter ended Sept. 30.

Cash App generated $ 1.82 billion in bitcoin revenue, up 11% from the previous year.

But San Francisco-based Square said bitcoin’s revenue and gross margin declined from the previous quarter as the cryptocurrency’s relative price stability led to a decline in trading activity.

The company, led by Jack Dorsey, boss of Twitter Inc (TWTR.N), has benefited over the past year from increased e-commerce demand due to a pandemic from people staying at home .

Its gross payment volumes, a measure of transactions processed on the Cash App, increased 27% to $ 3.7 billion.

Total net sales jumped 27% to $ 3.84 billion.

Report by Noor Zainab Hussain in Bengaluru; Editing by Devika Syamnath

Our Standards: Thomson Reuters Trust Principles.

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