Square’s Cash App’s revenue from bitcoin continues to rise exponentially as FOMO sets in amid increasing BTC price.
Bitcoin is the King
According to Square’s third-quarter report, Cash App’s revenue generated in the form of bitcoin skyrocketed over $1.63 billion. The steep uptick in bitcoin revenue is an increase of more than 1,100% compared to Q3 2019.
Notably, the report adds that on the back of the massive bitcoin-derived revenue, the premier cryptocurrency has also overtaken all other revenue sources for the Cash App. Bitcoin makes up almost 80% of Cash App’s total revenue in Q3 2020, the report reads.
For Q3 2020, Cash App generated total revenue of $2 billion, with revenue generated from all other sources excluding bitcoin totalling $453 million – or roughly 22% of total revenue.
For the uninitiated, Square’s Cash App is a U.S.-based financial services app that makes it easier for retail investors to purchase bitcoin by charging them a small fee.
The previous month, BTCManager reported that Square had joined the likes of MicroStrategy after it announced that it had become the latest publicly-listed company to invest directly in bitcoin. At the time, the statement from Square read:
“Square believes cryptocurrency is an instrument of economic empowerment and provides a way to participate in a global monetary system, which aligns with the company’s purpose.”
Interestingly, at the time, Square had purchased bitcoin worth $50 million, which is now worth more than $74 million on the back of bitcoin breaking the long-untouched $15,000 mark.
The latest Q3 2020 report notes that a major factor contributing to record-shattering bitcoin-derived revenue was the app’s recently released Auto-Invest tool which enables users to recurring daily or monthly purchases of BTC or any other stock.
Figures Speak for Themselves
Per the report, for Q3 2020, bitcoin revenue produced $32 million in gross profit, marking an increase of 15 times from the previous year’s profit of $2.1 million in the quarter of the year.
The impressive financial results for the quarter had a ripple effect for the company’s stock as Square’s share price surged by approximately 6% during after-hours, hovering close to its previous all-time high of $190 recorded earlier this month.