The Bitcoin services on Square and Cash App saw massive growth in Q2 2021, resulting in nearly $3 billion in revenue for the company.
Square, the financial service company run by the BTC bull Jack Dorsey, has nearly doubled its gross profit in the second quarter of 2021 compared to the same part of last year. Interestingly, a substantial part of that increase came from the company’s Bitcoin-related services, which have blossomed since the start of 2021.
Square’s Gross Profit Skyrockets
The firm, based in San Francisco, announced the impressive numbers in its Q2 2021 report sent to investors recently. Perhaps most notably, the results show a record gross profit of $1.14 billion, which is a 91% year-over-year increase.
Cash App, the company’s payment service application available only in the US and the UK, is responsible for $546 million of the gross profits – 94% higher than Q2 2020. The differences with 2019 are even more significant, as the paper explained:
“Compared to two years ago, inflows per monthly transacting active customer nearly doubled, and gross profit per customer was up 2.5x.”
Square Gross Profit YoY. Source: Square
The total revenue also went to new highs of $4.68 billion, which is 143% up YOY, and the services connected to the primary cryptocurrency had a crucial part in this growth. Such features drove $2.72 billion, with a gross profit of $55 million. This meant that both were “up approximately 3x year-over-year.”
As such, Square’s report indicated that the “Bitcoin revenue and gross profit benefited from year-over-year increases in the price of bitcoin and bitcoin activities and growth in customer demand.”
However, Square’s investments in BTC, reported previously, has brought a $45 million impairment loss as the price of the asset and the entire crypto market slumped in value in May and June.
Square’s History With Bitcoin
As mentioned above, the financial services company spearheaded by one of the most prominent Bitcoin proponents – Jack Dorsey – has frequently displayed its support for the asset.
Most recently, the US giant said it has agreed to acquire an Australian financial tech firm called Afterpay for $29 billion and will enable BTC purchases through Cash App.
Before that, Square highlighted intentions to launch a new business venture combining decentralized finance with Bitcoin to facilitate non-custodial and permissionless services. This came just a few weeks after the company confirmed that it will indeed develop and release a BTC hardware wallet.