Cash App, a mobile payments service by Square Inc., generated more than $ 1.63 billion in bitcoin revenue in Q3 2020, an increase of more than 1,000% year-on-year. The company recently invested 1% of its total assets, equivalent to $ 50 million in bitcoin.
The Cash app’s Bitcoin revenue skyrocketed
Square Inc. 3rd quarter 2020 earnings report is released on Thursday. NYSE (NYSE: SQ) listed company with a market cap of $ 86 billion offering software and hardware payment products as well as small business services. Its CEO Jack Dorsey is also the co-founder of Twitter. Square’s flagship mobile payments service, Cash App, launched bitcoin trading in 2018 to allow users to buy and sell BTC. The company wrote:
The Cash application generated $ 1.63 billion in bitcoin revenue and $ 32 million in profit from bitcoin during the third quarter of 2020, an increase of about 11 times and 15 times over the same period last year.
“Bitcoin revenue and gross profit benefit from an increase in bitcoin operations and volume per customer,” the report adds.
Cash App’s bitcoin revenue for the three months ending September 30 this year was $ 1,633,764, compared with $ 148,285 generated in the same period last year, up 11 times or around 1,002%. This is a significant improvement over Q2 performance when the company reported that Cash App bitcoin revenue increased 600% and profits increased 711%.
Additionally, Square’s bitcoin revenue accounts for approximately 54% of the company’s total net sales of $ 3,033,874, according to its consolidated earnings report. As a separate segment, Cash App generated $ 2,068,595 in revenue in Q3, 80% of which was from bitcoin.
The San Francisco-based company explains that it calculates the “total amount of money from selling bitcoin to customers” as the bitcoin revenue and the total amount of BTC that the company purchases to facilitate customers access to cryptocurrencies as expenses. bitcoin. Furthermore, it applies “a small margin of bitcoin’s market price” when the customer purchases the cryptocurrency through the Cash App.
Square Inc. has recently made a substantial investment in bitcoin, placing about 1% of the company’s total assets or around $ 50 million in cryptocurrency. Square’s decision to invest in BTC followed another public company, Microstrategy, to put about half a billion dollars into bitcoin and make the cryptocurrency the Treasury’s primary reserve asset. Square stated:
We have invested $ 50 million in bitcoin because we believe that the cryptocurrency is an economic empowerment and fit for the company’s purpose. We expect to hold this investment in the long term.
Did you buy bitcoins on the Cash app? Let us know in the comments section below.
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