Square released its numbers for the third quarter of the month, and the payments company saw a massive surge in Bitcoin revenue, topping the $ 1 billion mark for the first time
Jack Dorsey’s payments firm Square reported massive numbers for the third quarter of the year. According to the third quarter investor letter published yesterday at the close of the market, Cash App had Bitcoin sales of $ 1.63 billion and gross profit of $ 32 million in the third quarter of the year. Revenue and profit are 11 and 15 times year-over-year growth, the report added.
This is the first time Bitcoin revenue has passed the $ 1 billion mark. In the second quarter of 2020, Cash App had bitcoin sales of $ 875 million and profits of $ 17 million. The latest numbers are also better than last year. In 2019, Cash App sold $ 516 million worth of Bitcoin. The latest numbers were more than three times as high as in the entire previous year.
The Cash app generated $ 2 billion in revenue in the third quarter, with Bitcoin making up the lion’s share. The publicly traded company generated $ 453 million in all other revenue streams, which is 22% of Square’s total revenue.
Cash App acts as a broker in the Bitcoin market, buys the cryptocurrency on behalf of the users and charges a small fee. The company attributes the increase in Bitcoin revenue to an increasing number of active users on the platform. According to the report, the Cash app gives customers more ways to spend, send, save, and invest their money. The availability of products such as Cash Card, Direct Deposit, and Stock Brokerage resulted in customers adding more funds to their Cash App account. The automatic bitcoin purchases also helped the company generate more sales.
The report said, “Customers who launched two or more products were very engaged: In the third quarter, those customers had 3-4x more transactions and made 3-4x more gross profits than customers who only launched peer-to-peer. Payments used. “.
Thanks to the newly launched products, customers use the Cash App every day. In the third quarter, the daily transactions with active Cash App customers nearly doubled compared to 2019 and accounted for around a quarter of the monthly transactions with active Cash App customers.
Square was one of the leading publicly traded companies involved in Bitcoin. The company reported that its $ 50 million Bitcoin investment is now worth $ 74 million. Square continues to believe that cryptocurrencies are instruments of economic empowerment that align with corporate goals.