Cash App, the Bitcoin-friendly mobile payments application by US financial services firm Square, reported that Bitcoin (BTC) outperformed all other sources of revenue, accounting for nearly 80% of the total revenue its revenue in the third quarter.
In Square’s 3rd quarter report, Cash App Bitcoin revenue of $ 1.63 billion Bitcoin marked a 1,100% larger increase over the same period in 2019.
Bitcoin revenue is by far the largest component in generating Cash App’s overall revenue of $ 2 billion, with all other revenue streams totaling $ 453 million, or 22% of the total. revenue.
The Cash app acts as a broker to buy Bitcoin, buy it on behalf of the user and add a small fee.
The report notes that some of the increase in Bitcoin sales is due to the app̵7;s Auto-Invest tool, which launched in May this year, allows users to periodically buy shares or BTC on a daily or weekly basis.
Bitcoin revenue generated $ 32 million in gross profit in the third quarter, a 15-fold increase from the previous year’s $ 2.1 million profit in the same period.
Square’s overall 3rd quarter revenue was over $ 3 billion, up 140% from 2019 – of which Bitcoin accounted for more than 50%. Total Bitcoin revenue for the whole year of 2019 was $ 338 million with a gross profit of $ 5 million.
Hours after the report was released, Square’s share price jumped 6% during overtime to $ 184, from an earlier all-time high of $ 190 earlier this month. . At the same time, Bitcoin rose by a similar amount to reach a two-year high of $ 15,880.
In the report, Square also noted his $ 50 million Bitcoin (4,709 BTC) investment as a treasury asset, currently worth $ 74.8 million. The company’s acquisition is based on the belief that “the cryptocurrency is an economic empowerment tool and is in line with the company’s intentions,” adding:
“We expect to keep this investment in the long term.”
Despite Square’s massive investment, the company ranks seventh in terms of the company’s publicly traded Bitcoin volume.