• Tech - News - Tech Companies
  • Updated: August 02, 2021

Cash App's Bitcoin Revenue Rose 200% in Q2

Cash App's Bitcoin Revenue Rose 200% in Q2

Square Inc. announced that its Cash App service’s bitcoin yearly revenue rose 200% to $2.72 billion from $875 million in the second quarter of the year.

According to the Jack Dorsey-owned company, Cash App's bitcoin gross profit also jumped to $55 million from $17 million, it said in its Q2 financial letter to shareholders, which was recently released.

The company explained that bitcoin revenue and gross profit benefitted from YoY increases in the price of bitcoin and bitcoin activities and growth in customer demand.

Bitcoin revenue and gross profit however declined from Q1, mainly due to relative price stability, which affected trading activity compared with prior quarters.

Future quarters may see fluctuation in bitcoin revenue and gross profit as a result of changes in customer demand or market price, the letter says.

During the second quarter of the year, Square realised an impairment loss of $45 million on the bitcoin the company holds. Because bitcoin is accounted for as an indefinite-lived intangible asset, if the value of bitcoin falls below the carrying value, an impairment is required.

As of June 30, the fair value of the company's bitcoin investment was $281 million, $127 million greater than the carrying value. The company purchased its bitcoin for $50 million in Q4 and $170 million in Q1.

Overall, the company posted Q2 adjusted EPS of 66c, adjusted EBITDA of $360 million and total revenue of $4.68 billion. EPS more than doubled analysts' estimates of 31c and adjusted EBDITA of $178 million, according to FactSet.


Related Topics

Join our Telegram platform to get news update Join Now

0 Comment(s)

See this post in...


We have selected third parties to use cookies for technical purposes as specified in the Cookie Policy. Use the “Accept All” button to consent or “Customize” button to set your cookie tracking settings