Square, the fintech firm led by Twitter CEO Jack Dorsey announced that its third quarter revenue from Bitcoin (BTC) sales on its Cash App mobile finance application had increased drastically.
In a shareholder letter that Square released on Nov. 5, the company noted that “Cash App generated $1.63 Billion of bitcoin revenue and $32 million of” gross profit in Q3 2020. The company also highlighted that year-over-year the Bitcoin revenue increased 11 times while the revenue was up 15 times.
As Modern Consensus reported in late May, Cash App is increasingly pushing its users to buy Bitcoin, even featuring an automatic periodically recurring investment feature. About two years ago, the application deeply integrated the oldest cryptocurrency and started allowing people to send the cryptocurrency between people.
Furthermore, Square also reports in this year’s third quarter the firm achieved a total profit of $794 million on $3.03 billion of total net revenue. This means that Bitcoin-related activity was responsible for just under 54% of the company’s total revenue and more than 4% of its profits. The firm’s Cash App saw its profit grow by 212% year over year, reaching $385 million—over 9.3% of which came from Bitcoin activity.
Dorsey also put his money where his mouth is, investing $50 million—1% of Square’s total assets—in bitcoin
Dorsey is not shy of his approval of Bitcoin and the influence that many anticipate it could have on society if broadly adopted. In September he also announced that Square launched the “Crypto Open Patent Alliance” which he explained aims “to help the crypto community defend against patent aggressors and trolls.” To back his good intentions, he also gave all of the firm’s relevant patents to the new organization.
Payments competitor PayPal jumped into the ring in October, announcing that customers would be able to buy, sell, and hold bitcoin and three other cryptocurrencies in their accounts, and use them to make payments at 26 million merchants worldwide.
Updated Nov. 19 to add Square’s $50 million investment in bitcoin.