Squares Cash App Generates $ 1.8 Billion In Bitcoin Revenue, BTC Profit Up 29% In Q3

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Square Inc. reported third-quarter bitcoin revenue of $ 1.82 billion, an 11% increase from the same period last year. Its gross bitcoin profit was $ 42 million during the period, an increase of 29% year-over-year.

Square’s Bitcoin Profit Up 29% in Q3

In the company’s third-quarter 2021 letter to shareholders, released Thursday, Square Inc. reported total third-quarter net sales of $ 3.84 billion, up 27% year-on-year. ‘other.

The company’s bitcoin revenue is generated through its mobile payment service, Cash App. The platform generated revenue of $ 2.39 billion and gross profit of $ 512 million in the third quarter, an increase of 16% and 33% year-over-year, respectively . Square wrote:

Cash App generated $ 1.82 billion in bitcoin revenue and $ 42 million in gross bitcoin profit in the third quarter of 2021, up 11% and 29% year-over-year, respectively.

Bitcoin’s gross margin represented around 2% of Square’s total bitcoin revenue in the third quarter. The company explained that bitcoin’s revenue is the total amount of bitcoin sold to customers, adding that bitcoin’s costs are the total amount of bitcoin it purchases. “We buy bitcoin to make it easier for customers to access bitcoin,” the company said.

Compared to the second quarter, however, Square’s bitcoin revenue and gross profit declined quarter over quarter, the company said, adding that it was “primarily driven by the relative stability of the bitcoin price. , which affected trading activity compared to previous quarters.

Additionally, the company warned that over the next few quarters, “bitcoin’s revenue and gross margin may fluctuate due to changes in customer demand or the market price of bitcoin, especially since we are seeing strong year-over-year growth rates in the fourth quarter of 2020. “

Square further noted that it invested $ 50 million in bitcoin in the fourth quarter of last year and an additional $ 170 million in the first quarter of this year. In the third quarter, the company recorded an impairment loss of $ 6 million on its investment in bitcoin. Square wrote:

As of September 30, 2021, the fair value of our bitcoin investment was $ 352 million based on observable market prices, which is $ 203 million more than the book value of the investment.

What do you think of Cash App’s bitcoin earnings? Let us know in the comments section below.

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