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Square's Cash App Generated $2.72 Billion in Bitcoin Revenue in Q2 2021 | CoinCodex

source-logo  coincodex.com 02 August 2021 10:19, UTC

Key highlights:

  • Square's Cash App generated $2.7 billion in Bitcoin revenue in Q2 2021, which translated to $55 million in gross profit
  • The figure was around 3x larger than in Q2 2020, but represented a decline compared to Q1 2021
  • Square has also announced that it will be acquiring Australia-based Afterpay in a $29 billion deal

Square's Cash App brought in $2.72 billion in Bitcoin revenue in Q2 2021

Cash App, a popular payments app developed by Square, generated $2.72 billion in Bitcoin revenue during Q2 2021. In Q2 2020, this figure was a $875 million, which means that Cash App’s Bitcoin revenue was up around 3x year over year. The $2.72 billion in Bitcoin revenue that Cash App generated in Q2 2021 translated to $55 million in gross profit (about 2% of revenue), according to Square’s Q2 2021 shareholder letter. 

However, the Q2 2021 Bitcoin revenue figure was lower than in the first quarter of the year, when the app generated a record $3.51 billion in Bitcoin revenue. The company attributes this drop to the fact that Bitcoin’s price was relatively stable during the quarter, which had an impact on customer trading activity. 

The Bitcoin revenue figure reported by Square refers to the total amount of Bitcoin sold to customers through the Cash App. The company makes money through the service by applying a margin to the market cost of Bitcoin.

When Cash App first introduced its Bitcoin functionality, it did not support withdrawals and deposits to and from external Bitcoin wallets. Now, the app supports external withdrawals and deposits, making it suitable as a gateway to the crypto market even for users who want to manage their own private keys. 

Beyond offering Bitcoin through its Cash App, Square is also involved with Bitcoin in a number of different ways. The company’s CEO Jack Dorsey recently revealed that Square is now working on a Bitcoin hardware wallet, which will most likely be focused on mobile use. 

On Sunday, Square announced that it is acquiring Australia-based payments firm Afterpay in a deal worth $29 billion. According to Square, existing Afterpay users will get access to Cash App’s financial tools, which will also include the ability to purchase Bitcoin. The deal is expected to close in Q1 2022. In the future, it will be interesting to see how the expansion of the Cash App userbase via the acquisition will affect the Bitcoin revenue generated by the app. 

coincodex.com