Cash App from Square recently announced that it posted $17 million in gross profit. The company also said that its Bitcoin revenue during the second quarter went up to $875 million.
Cash App helps Square gain revenue
On Tuesday, Square said that it made $875 million in Bitcoin revenue via its Cash App service. This revenue was generated during Q2 2020. The press release came a day earlier than expected and Square called it “early external access of the company’s quarterly financials.” It noted that the Cash App generated about $17 million in gross profit from Bitcoin in the second quarter. The company’s filings suggest that the total expensed related to the company’s Bitcoin offering were $858 million.
In its Q2 report, Square noted,
“Cash App generated $875 million of bitcoin revenue and $17 million of bitcoin gross profit during the second quarter of 2020, up 600% and 711% year over year, respectively. Bitcoin revenue and gross profit benefited from an increase in bitcoin actives and growth in customer demand.”
Better revenue figures
In the first quarter of the year, Square made about $306 million in Bitcoin revenue. The gross profit for Bitcoin was about $7 million. The gross profit for the company almost doubled on a quarter-on-quarter basis. The volumes also increased by 72% quarter-on-quarter and 367% on a year-on-year basis.
Square also said that it experienced a month-on-month increase in volume per transacting active Cash App customers. This change was noted across all peer-to-peer payments which include the Cash Card and Bitcoin investing.
The company said that this increase could be partially driven by the unemployment benefits and government stimulus. It said that it does not sustain at the same levels during the remaining third quarter.
Square was able to tone down its losses during the quarter. In Q1, it suffered a loss of $106 million, which reduced to just $11 million in the second quarter.