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Square Reports Whopping $2.72 Billion in Bitcoin Revenue Despite Major Market Correction

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Mon, 08/02/2021 - 04:33
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Alex Dovbnya
Square managed to record significant year-over-year growth in revenue despite the massive market correction
Square Reports Whopping $2.72 Billion in Bitcoin Revenue Despite Major Market Correction
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Cash App, the peer-to-peer payments service of Jack Dorsey’s financial firm Square, generated $2.72 billion in Bitcoin revenue in the second quarter.

While this represents a 143 percent year-over-year increase, the figure pales in comparison to the $3.5 billion that was reported in the previous quarter.        

The Bitcoin service accounts for the lion’s share of Square’s total Q2 net revenue ($4.68 billion).    

Square managed to secure significant growth in Bitcoin-related revenue in spite of a massive market correction. In Q2, an onslaught of bear-favoring news sent the top cryptocurrency careening by over 40 percent, and Bitcoin logged one of its worst quarters on record.

Square’s Bitcoin gross profit was only a meager $55 million in the second quarter, a 26 percent drop from the $75 million it reported in Q1.

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A $45 million impairment loss  

Due to the crypto market’s significant drawdown in Q2, Square had to report an impairment loss of $45 million on its Bitcoin investment.

E-car manufacturer Tesla, for comparison, took a lower-than-expected $23 million Bitcoin loss that was reported in late July.        

Following MicroStrategy’s lead, Square became one of the first publicly-traded companies to add Bitcoin to its balance sheet.

The company invested $50 million last October and later revealed another $170 million purchase in February.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.