Square reached a major threshold in its third quarter: Bitcoin revenues crossed $1 billion for the first time. Cash App generated $1.63 billion in Bitcoin revenue in the quarter, with $32 million in g
Square reached a major threshold in its third quarter: Bitcoin revenues crossed $1 billion for the first time. Cash App generated $1.63 billion in Bitcoin revenue in the quarter, with $32 million in gross profit. The numbers represent 11x and 15x growth compared to the same period last year.
Jack Dorsey's company published the results in its quarterly investor letter. Cash App took the lion's share of Square's $2 billion total quarterly revenue. The remaining $453 million came from all other operations, accounting for 22% of the business.
The surge marks a dramatic acceleration from earlier in 2020. Square booked $875 million in Bitcoin revenue and $17 million in profit during the second quarter. The company sold $516 million worth of Bitcoin throughout all of 2019, meaning Q3 alone generated more than three times that annual total.
Square operates as a broker in the Bitcoin market, purchasing cryptocurrency on behalf of customers and taking a fee. The company attributed the growth to expanding its product offerings. Cash Card, direct deposit, and stock brokerage tools drew more users to the platform and kept them engaged with higher transaction volumes.
The company's own data showed the compounding effect of product adoption. "Customers who adopted two or more products were highly engaged: during the third quarter, these customers had 3-4x more transactions and generated 3-4x more gross profit compared to customers who only used peer-to-peer payments," the report stated. Daily active Cash App customers nearly doubled from 2019 and represented about a quarter of the platform's monthly active user base.
The company also benefits from its own Bitcoin holdings. Square's $50 million investment has grown to $74 million in value. The company has positioned cryptocurrency as aligned with its mission of providing economic empowerment to customers.
