Cash App, the Bitcoin-friendly mobile payments app from U.S. financial services firm Square, has reported Bitcoin (BTC) has overtaken all other revenue sources, making up almost 80% of its entire revenue in the third quarter.

In Square’s third-quarter report, Cash App’s Bitcoin-derived revenue of $1.63 billion in Bitcoin marked a massive increase of more than 1,100% when compared to the same period in 2019.

Bitcoin revenue was by far the largest component of Cash App’s overall revenue generation of $2 billion, with all other revenue streams totaling $453 million, or 22% of the total.

Cash App functions as a broker for Bitcoin purchases, buying it on behalf of the user, and adding a small fee.

Read Also:   Ethereum DeFi prints massive recovery 10-30% after capitulation amongst investors

The report notes that some of the increased Bitcoin sales were due to the app’s Auto-Invest tool, launched in May this year, which allows users to recurring daily or weekly purchases of stock or BTC.

Bitcoin revenue produced $32 million in gross profit for the third quarter, an increase of 15 times from the previous year’s profit of $2.1 million in the same period.

Square’s total Q3 revenue was more than $3 billion, up 140% from 2019 — of which Bitcoin comprised more than 50%. The total Bitcoin revenue for all of 2019 was $338 million with a gross profit of $5 million.

Read Also:   Akoin rolls out to Kenyan tech city in first step toward Akon City

Hours after the report was released, Square’s share price rose 6% during after-hours trading to sit at $184, eyeing off the previous all-time high of $190 earlier this month. At the same time, Bitcoin rose by a similar amount to hit a two-year high of $15,880.

In the report Square also noted its $50 million Bitcoin (4,709 BTC) investment as a treasury asset, which is now worth $74.8 million. The company’s purchase was based on the belief that “cryptocurrencies are an instrument of economic empowerment and align with the company’s purpose,” adding:

“We expect to hold this investment for the long term.”

Despite Square’s large investment, the company ranks seventh in terms of publicly trading company’s Bitcoin holdings.

Read Also:   Bitcoin’s price just hit a new all-time high on Coinbase
Google Play

Source link


Almost 80% of Square’s Cash App Q3 revenue was from Bitcoin

by Cameryn Gollakner
Choose A Format
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Open List
Submit your own item and vote up for the best submission
Meme
Upload your own images to make custom memes
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format