U.S.-based payment company Square Inc. reported a monthly decline in Bitcoin revenue from its Cash app in the third quarter of 2021, with the total amount being $ 1.82, a total of 11% more than last year.
Square has made profits amid the pandemic as many users are in need of e-commerce services. The number of transactions processed through the app rose 27% in the third quarter to a total of $ 3.7 billion.
The company is run by Jack Dorsey, who also runs Twitter and is a big BTC enthusiast who is currently looking to invest in the future of decentralization and new economies.
Square’s third quarter of 2021 totaled $ 3.84 billion in net sales, up 27% from last year; $ 2.03 billion excluding BTC. Gross profit increased 43% year over year to $ 1.13 billion. Revenue from transactions was $ 1.30 billion, up 40% since 2020.
Bitcoin sales and gross profit, however, declined compared to the second quarter. The company said the decline was due to “the relative stability of bitcoin price”.
In the third quarter of 2021, we posted a loss of $ 7 million.
Bloomberg shared what Square’s Chief Financial Officer Amrita Ahuja shared with them:
Bitcoin transactions through Cash App have grown tremendously in the past two years, but Bitcoin revenue can be a deceptive metric. Square reports all Bitcoin sales as revenue, which is why this number can look huge and is dependent on things like price volatility. Bitcoin gross profit, however, represents the money Square collects through fees from Bitcoin transactions and better reflects this part of Square’s business.
Related reading | Square’s Cash App Reports Quarterly Bitcoin Sales Of $ 2.7 Billion, A 200% Jump
After the publication of the Q3 results letter, the company fell 4.9% in post-market trading.
The focus is on Bitcoin (and international waters)
Square’s winning letter highlighted the agreement to acquire the Afterpay platform “with more than 16 million consumers and approximately 100,000 merchants as of June 2021”.
With this transaction we plan to unite two complementary companies with a common focus on economic strengthening and financial inclusion. We believe that the combination will connect our seller and cash app ecosystem more tightly, accelerate our strategic priorities, and allow us to deliver even more compelling products and services to consumers and merchants.
The report also sheds light on other projects and partnerships, such as the new Cash App offering for teenagers, an important addition to the demographics, and the SoFi stadium partnership.
We believe our partnership with SoFi Stadium is a testament to how we are now equipped to deliver unique trading experiences and support the needs of complex, multi-purpose sellers.
The app is currently focused on expanding and offering accessible and flexible commercial products for everyone. The results show “an increased acceptance of contactless payment options due to the pandemic”.
The company stated that the focus remains on its “international strategy to achieve product parity worldwide, continue to invest in brand awareness and launch into new markets”.
Square said it was focusing on BTC rather than incorporating other cryptocurrencies into the Cash app. Previously, Dorsey tweeted about Square’s intention to build an energy efficient and more accessible BTC mining system.
“Square is considering building a custom silicon and open source Bitcoin mining system for individuals and businesses around the world.”
Related reading | Jack Dorsey: Square could set up a bitcoin mining system
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