Square Reports 600% Increase in Quarterly Bitcoin Revenue

Jack Dorsey's Square has seen one of the largest quarterly increases yet for its bitcoin business.

Aug 5, 2020 at 9:30 a.m. UTC
Updated Sep 14, 2021 at 9:40 a.m. UTC

Square's bitcoin business is continuing its rapid growth, with Q2 revenue up 600% year on year.

  • Announced Tuesday, the San Francisco payments company said revenue made from selling bitcoin to its Cash App customers in Q2 came to a total of $875 million, six times the amount in the same period in 2019.
  • Square stresses it only takes a "small margin" selling bitcoin to customers, but Q2's results still mean it made $17 million profit – up 711% year over year.
  • Square released its results ahead of schedule after someone gained "early external access." It hasn't provided any further details on what happened.
  • Since Square first enabled bitcoin buying through its Cash App in November 2017, it has grown to become a dominant part of the business.
  • While bitcoin made up only 5% of its revenue at $34 million in Q1 2018, it came to $65.5 million in the same quarter in 2019.
  • By Q4 2019, Square's bitcoin revenue reached $178 million and $306 million in Q1 2020, $100 million more than the revenue generated from its fiat services.
  • But Tuesday's results represent one of the biggest increases in quarter-to-quarter revenue to date. The company attributes the rise to a surge in customer demand and volumes as well as an increase in bitcoin's circulating supply.
  • Square excludes bitcoin revenue from its total figures, saying that incorporating something so unpredictable and volatile into its results would make it hard to gauge the company's overall performance.

Read more about
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Crypto News Roundup for May 25, 2022

With bitcoin seemingly unable to break above the $30,000 threshold, plus a look at the suspects in the cast of the UST collapse, CoinDesk’s "Markets Daily" is back with the latest news roundup.

With bitcoin seemingly unable to break above the $30,000 threshold, plus a look at the suspects in the cast of the UST collapse, CoinDesk’s "Markets Daily" is back with the latest news roundup.

CoinDesk - Unknown
2
CoinDesk - Unknown
ApeCoin

CoinDesk - Unknown
3
CoinDesk - Unknown
Proof-of-Work vs. Proof-of-Stake: What Is the Difference?

Proof-of-work (PoW) and proof-of-stake (PoS) are two different methods to validate cryptocurrency transactions.

Proof-of-work (PoW) and proof-of-stake (PoS) are two different methods to validate cryptocurrency transactions.

CoinDesk - Unknown
4
CoinDesk - Unknown
Golf Brand Callaway Joins LinksDAO as Equity Investor, ‘Strategic Partner’

The DAO that wants to buy a golf course is adding a big name to its cap table.

The DAO that wants to buy a golf course is adding a big name to its cap table.

CoinDesk - Unknown