The performance of Bitcoin (BTC) is skyrocketing and so is that of the Cash App. Indeed, Square’s mobile payment platform has reported record revenues in Bitcoin. Bitcoin alone would represent nearly 80% of the app’s total revenues in Q3, more than all the other products combined.
A massive increase of more than 1.100% over the same period in 2019
Square’s latest quarterly activity report indicates $1.63 billion in revenue from Bitcoin through Cash App. Compared to the same period in 2019, this represents an increase of more than 1.100%. The report states in particular that the performance recorded in Bitcoin was partly due to the launch of the Auto-Invest tool on the app. This tool allows users to purchase BTCs on a recurring daily or monthly basis.
The success of this tool contributed to generating $32 million in gross profit for the third quarter of the current year. By way of comparison, this gross profit was only $2.1 million for the same period in 2019. These revenues are all the more impressive when looking at the complete balance sheet for the past year. Bitcoin’s total revenue was $338 million with a gross profit of $5 million. A total that will therefore have been largely exceeded in the third quarter of this year.
In the wake of this publication of results, Square’s share price took advantage of the opportunity to climb to $184, an increase of 6%. It thus approached its previous record of $190, similar to what happens with Bitcoin. The cryptocurrencies seems to continue serenely its ascent, approaching the bar of $20,000.
But the main event linking Square to Bitcoin remains the company’s recent investment. It had put $50 million on the table to acquire the equivalent of 4,709 BTC. This acquisition has since increased in value and is currently worth about $75 million. “Cryptocurrencies are an instrument of economic empowerment and are aligned with the company’s goal. We plan to keep this investment for the long term,” the company said, confident that it made the right choice.
It would therefore seem that the success of CashApp, and incidentally that of Square, will inevitably depend on Bitcoin, which is experiencing a revival at the end of the year. If Square is only 7th in the ranking of publicly traded companies with Bitcoin holdings, it could move up as its profits increase.