Square generates $2.72B through Bitcoin (BTC)

Tue 03 Aug 2021 ▪ 13h25 ▪ 2 min read — by Violaine Silverstein

Cash App, the peer-to-peer transaction service from Jack Dorsey’s financial services company Square, generated $2.72 billion in Bitcoin revenue in the second quarter.

Square records substantial revenue growth despite the correction

The index increased by 143% compared to the previous quarter. Two quarters ago, the company reported earnings of $3.5 billion (~£2.5 billion).

Square’s Bitcoin services accounted for the bulk of its total net revenue in the second quarter ($4.68 billion or ~£3.36 billion).

The company managed to deliver considerable growth in Bitcoin-related revenues despite a grand market correction. Bitcoin fell by more than 40% in the second quarter and experienced one of the worst quarters in its history, which obviously pleases the bears.

As a result, the company has been negatively affected: Square’s Bitcoin gross profit was just $55 million (~£40 million) in the period, down 26% from its first quarter profit of $75 million (~£54 million).

Square had to report an impairment loss of $45 million (~£32 million) on its Bitcoin investment in the second quarter due to a substantial cryptocurrency market drawdown.

… and so does Tesla

E-car maker Tesla, by comparison, suffered a lower than expected loss of $23 million (~£16 million) on its Bitcoin investments. The company announced this at the end of July.

Following MicroStrategy’s model, Square became one of the first publicly traded companies to include Bitcoin on its balance sheet.

The company invested $50 million (~£36 million) in BTC last October and announced another $170 million (~£122 million) purchase in February.

The famed Bitcoin volatility has put a dent in more than one company’s balance sheet. Square reports multi-million dollar losses, and so does Tesla. Overall the two companies have been doing great despite the extended crypto market drawdown.

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Violaine Silverstein avatar
Violaine Silverstein

Quand j’ai commencé dans les cryptos il y a 3 ans, il y avait plus de 95% d’hommes et encore très peu de femmes, bon ça n'a toujours pas beaucoup changé, mais les choses bougent et je suis fière de representer les femmes dans ce milieu très technique qui est passionnant et plein d'avenir.


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