Square Inc’s Cash App is just one of many ways CEO Jack Dorsey is exposing the public to Bitcoin.
The payments firm added support for cryptocurrency purchasing in 2018 during a bear market, but demand has continued to climb.
The company’s latest quarterly revenue reports have revealed some staggering figures. It also clearly shows the impact the crypto asset is having on their bottom line.
Cash App Quarterly Revenue Figures Show Strength During Economic Turmoil
Just ahead of Bitcoin’s peak at $20,000 in 2017, Square Inc’s Cash App began rolling out testing of Bitcoin buying in small phases. This eventually proved successful, even as the asset fell into a downtrend, and expanded globally.
Cash App has since grown to also allow exposure to stocks, putting it head to head with the likes of Robinhood and other easy-access trading apps. But it also continued to offer Bitcoin and scale that business over the last several years.
That business has now grown so much that is accounts for a substantial chunk of the company’s revenue and profitability – figures that have increase sizably quarter over quarter and year over year.
In its latest quarterly revenue report, Square Inc. has revealed just how successful their Bitcoin business proves to be. The company also showed strong performance amidst a global pandemic and economic upheaval.
Bitcoin Profits, Revenue Rise Year Over Year By 600% and More
According to updated figures revealed by the company, Cash App “delivered strong growth in the second quarter of 2020” at $1.20 billion in revenue and $281 million in gross profit. Excluding Bitcoin, revenue was up $325 million or 140% year over year.
The company attributes the growth to an uptick in subscriptions and services-based revenue, and a rise in transactions generated primarily by business account usage.
The firm’s Bitcoin business generated $875 million in revenue and $17 million in gross profit during the second quarter of 2020. These figures are up over 600 and 700% year over year, thanks to “an increase in
bitcoin actives and growth in customer demand.”
The statement implies that more customers are becoming interested and active in Bitcoin, and voicing that demand. They’re also backing up that demand by putting their money into the cryptocurrency at an increasing rate.
Cash App attributes much of the growth to payment disbursements from the United States stimulus packages issued to individual taxpayers. Competitors like Coinbase also reported an increase in Bitcoin purchases for $1,200 after checks began going out.
Another round of stimulus checks are anticipated to begin rolling out soon and could lead to another quarter of growth for the Cash App.
Growth may even be compounded by the surging interest surrounding Bitcoin and other cryptocurrencies in Q3 compared to Q2.
Featured image from Deposit Photos.