A New, Much Higher ATH: Cash App’s Bitcoin Revenue Jumps 11x to $3.51 Billion
Twitter and Square CEO Jack Dorsey says the long-term focus is on “enabling bitcoin to be a native currency” of the internet.
Twitter CEO Jack Dorsey’s payment firm Square has posted another record quarter thanks to Bitcoin.
The company beat Wall Street expectations as soaring demand for bitcoin fueled a jump in cryptocurrency transactions on its peer-to-peer payment service Cash App.
Cash App generated $3.51 billion in Bitcoin revenue, up 11x from a year earlier at $306 million. This record number came in the quarter when the largest cryptocurrency became a trillion-dollar crypto asset, with the BTC price going from just under $30k to $62k.
Meanwhile, the gross profit from Bitcoin transactions was $75 million, which is the fees that Square collects, another all-time high.
Square represents one of the best data sets on retail investment trends on Bitcoin, notes crypto trader Light.
During the company's post-earnings call, Jack Dorsey told analysts that they view bitcoin as “the internet’s potential to have a native currency.” He said,
“This is going to be a long-term focus, enabling bitcoin to be a native currency. It removes a bunch of friction for our business, and we believe fully that it creates more opportunities for economic empowerment around the world.”
In February this year, San Francisco-based Square invested $170 million in Bitcoin that increased its bet on the digital assets from $50 million in Q4 of 2020, overall representing about 5% of its total cash.
The company's record Q1 2021 was also strengthened by the shift to digital transactions spurred by the pandemic that had gross payment volumes on Square rising 29% to $33.1 billion.
The total net revenue of the company jumped about four-fold to $5.06 billion.