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Cash App, a mobile payment service from Square Inc., generated more than $ 1.63 billion in bitcoin revenue in the third quarter of 2020, up more than 1,000% from the same period last year. The company recently invested 1% of its total assets, or $ 50 million, in bitcoin.
Cash App Bitcoin Revenue Increases
Square Inc. released its third quarter 2020 earnings report Thursday. Its CEO Jack Dorsey also co-founded Twitter. Square’s flagship mobile payment service, Cash App, launched bitcoin trading in 2018 to allow users to buy and sell BTC. The company wrote:
Cash App generated $ 1.63 billion in bitcoin revenue and $ 32 million in bitcoin gross profit during the third quarter of 2020, up approximately 11-fold and 15-fold year-on-year, respectively.
“Bitcoin’s revenue and gross profit benefited from an increase in bitcoin assets and volume per customer,” the report adds.
Cash App’s bitcoin revenue for the three months ending September 30 of this year was $ 1,633,764, up from $ 148,285 generated during the same period last year, an 11-fold or higher increase. about 1.002%. This was a significant improvement from Q2 performance when the company reported Cash App’s bitcoin revenue increased 600% and profits increased 711%.
Additionally, Square’s bitcoin revenue accounts for about 54% of the company’s net revenue of $ 3,033,874, according to its consolidated earnings statement. As a separate segment, Cash App generated $ 2,068,595 in revenue in the third quarter, 80% of which came from bitcoin.
The San Francisco-based firm explained that it counts “the total amount of bitcoin selling to customers” as bitcoin revenue and the total amount of BTC it buys to facilitate customer access to the cryptocurrency as bitcoin costs. Additionally, it applies “a small margin to the market cost of bitcoin” when customers purchase cryptocurrency through the Cash App.
Square Inc. recently made a significant investment in bitcoin, investing about 1% of the company’s total assets or about $ 50 million in the cryptocurrency. Square’s decision to invest in BTC followed another public company, Microstrategy, investing around half a billion dollars in bitcoin and making cryptocurrency its main treasury reserve asset. Square stated:
We have invested $ 50 million in bitcoin as we believe cryptocurrencies are an economic empowerment tool and are in line with the company’s purpose. We plan to hold this investment for the long term.
Do you buy bitcoins on Cash App? Let us know in the comments section below.
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