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Sahaj Sharma
Aug 2, 2021
by Sahaj Sharma

Bitcoin Revenue of Square Tripled in the 2nd Quarter, Plans Afterpay Acquisition

Bitcoin revenue Square
The bitcoin revenues of the Jack Dorsey-owned company Square and gross profit via its Cash App have both tripled in Q2 on a year-over-year basis. Dorsey revealed in a recent announcement that Square is all set to acquire Afterpay, the payment firm based in Australia for $29K.

Jack Dorsey’s Square Bitcoin Revenue Surged Via Its Cash App

In the shareholder letter of the firm that was released on Sunday Eastern Time, Square revealed that its Cash App has reportedly generated $2.72 billion of Bitcoin revenue and $55 million of Bitcoin gross profit during the second quarter.

However, the firm clarified that the Bitcoin revenue has declined on a quarter-over-quarter basis and said:

“It was driven primarily by relative stability in the price of bitcoin, which affected trading activity compared to prior quarters."

In addition to this, it was revealed that Cash App is cool-headed to expand its user base through the $29 billion acquisition deal with Afterpay, an Australia-based payment firm. 

Moreover, in a separate announcement, Square said that the acquisition is going to enable both the companies to offer their financial products to more clients. It said:

"Afterpay consumers will receive the benefits of Cash App’s financial tools, including money transfer, stock and Bitcoin purchases, Cash Boost, and more."

BTC Impairment Loss Revealed in Q2 by Firm

In recent revelations, Square said that it recognized a Bitcoin impairment loss of $45 million on its BTC investment in the second quarter. However, it should be noted that the fair value of the total investment stood at $281 million as of June 30, and it is still $127 million greater than the original value of the investment.

The Bitcoin revenue of Cash App represents the total sale amount of Bitcoin sold to customers with the cost, referring to the total amount of BTC that it bought.

Moreover, the company is even committed to making bitcoin hardware wallets in order to make bitcoin custody more mainstream.

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Square Cash App Bitcoin Afterpay
Bitcoin Revenue of Square Tripled in the 2nd Quarter, Plans Afterpay Acquisition
Sahaj Sharma
Sahaj is an aspiring journalist with a keen interest in cryptocurrency and the whole concept of Blockchain technology. He is positive about the future potential of Cryptocurrency and Blockchain in shaping the world of finance for good. At present, he is covering the latest developments in the field of the cryptosphere.

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