Cash App, the Bitcoin-friendly mobile payment app from US financial services company Square, has reported Bitcoin (BTC) has overtaken all other sources of income, accounting for nearly 80% of its total revenues in the third quarter.
In Square’s third quarter report, Cash App’s Bitcoin-derived revenue of $ 1.63 billion in Bitcoin represented a massive increase of more than 1,100% compared to the same period in 2019.
Bitcoin earnings were by far the largest part of Cash App’s total revenue generation of $ 2 billion, while all other revenue streams totaled $ 453 million, or 22% of the total.
Cash App acts as a broker for Bitcoin purchases, buys it on behalf of the user and adds a small fee.
The report notes that some of the increased Bitcoin sales were due to the app Auto-Invest tool, launched in May this year, which allows users to make daily or weekly purchases of shares or BTC.
Bitcoin revenue produced $ 32 million in gross profit for the third quarter, up 15 times from last year’s profit of $ 2.1 million in the same period.
Square’s total revenue in the third quarter was more than $ 3 billion, an increase of 140% from 2019, of which Bitcoin made up more than 50%. Total Bitcoin revenue for all of 2019 was $ 338 million with a gross profit of $ 5 million.
Hours after the report was released, Square’s stock price rose 6% during out-of-hours trading to $ 184, bearing in mind the previous high of $ 190 earlier this month. At the same time, Bitcoin rose by a similar amount, reaching a two-year high of $ 15,880.
In the report, Square also noted his $ 50 million Bitcoin (4,709 BTC) investment as treasury asset, now worth $ 74.8 million. The company’s purchase was based on the belief that “cryptocurrencies are a tool of economic empowerment and alignment with the company’s purpose,” adding:
“We expect to hold onto this investment for the long term.”
Despite Square’s large investment, the company is ranked seventh in terms of Bitcoin holdings of a publicly traded company.