Square, a payments company, announced today in its Q3 earnings statement that it had generated $1.81 billion in Bitcoin revenue in its Cash App, an increase of 11% over last year.
As a result, the company reported profits of $42 million from its Bitcoin investments.
Bitcoin trading revenue of $1.81 billion may seem impressive, but it represents a substantial decrease-roughly 23 percent-from the previous quarter. Bitcoin revenue was $2.72 billion and profits were $55 million in the second quarter.
The reason, Square said, was that cryptocurrency prices had stabilized and slowed trading activity. Because the price of Bitcoin wasn't fluctuating much, most people weren't interested in trading it.
In a statement, company officials noted, "Bitcoin revenues and gross profit increased year-over-year due to increased prices and activities related to bitcoin."
Revenue and gross profit for Bitcoin decreased in the third quarter of 2021 relative to the second quarter of 2021, primarily due to a relative stabilization in the price of bitcoin, which affected trading activity."
As a result of the pandemic-driven increase in e-commerce from people staying home, Jack Dorsey has seen a rise in growth dramatically as the company reported a 27% jump in net revenue to $3.84 billion - with $1.13 billion in gross profits.
According to Square, Cash App, a mobile app that lets users buy Bitcoin, has delivered strong growth to the company as a whole, generating $2.39 billion in revenue and $512 million in gross profit year over year, an increase of 16% and 33%, respectively.
Square announced recently that users over 13 can use the Cash App to deposit and spend money, as well as send it to friends.
Although minors will need their parent's or guardian's permission to use the app (and that parent-figure will have significant oversight), they'll still be able to access some of the app's most popular features.
However, the app will allow them to perform peer-to-peer transactions, as well as create a customized debit card they can use in real life and support Apple and Google Pay options.