Cash app, the mobile payment application from US financial services company Square, has reported this Bitcoin (BTC) has outperformed all other revenue streams, accounting for nearly 80% of its total income in the third quarter.
In the third quarter of Square Bitcoin app sales of $ 1.63 billion in Bitcoin represent a massive increase of over 1,100% over the same period last year.
Bitcoin revenue was by far the largest component of Cash App’s total revenue generation $ 2 billion and all other revenue streams were $ 453 million, or 22% of total revenue.
Cash App acts as an intermediary for Bitcoin purchases. Purchase on behalf of the user and add a small fee.
The report notes that Part of the surge in Bitcoin sales was due to the app’s auto-invest tool, which was launched in May of this year. This enables users to make recurring daily or weekly purchases of stocks or BTC.
Bitcoin sales brought in gross profit of $ 32 million for the third quarter, a 15x increase in relation to the prior year benefits of $ 2.1 million over the same period.
Square’s total revenue for the third quarter was more than $ 3 billion, up 140% from 2019. Bitcoin made up more than 50% of this. Total Bitcoin sales in 2019 were $ 338 million with gross profits of $ 5 million.
Hours after the report was publishedSquare’s share price rose 6% to $ 184 during the night hours, facing an all-time high of $ 190 earlier this month. At the same time, Bitcoin rose by a similar amount, hitting a two-year high of $ 15,880.
In the report Square also pointed to its $ 50 million investment in Bitcoin (4,709 BTC) as a treasury asset, which is now worth $ 74.8 million. The company’s purchase was based on the belief that “cryptocurrencies are an instrument of economic empowerment and are aligned with the purpose of the company,” added:
“We hope to keep this investment going over the long term.”
Despite Square’s big investment In terms of stake in Bitcoin, the company ranks seventh.
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