Square Inc., Jack Dorsey’s payments company, revealed in its Q3 earnings reports that Bitcoin generated 23% less quarterly profits for mobile payments app Cash App.
However, Bitcoin revenue and profits are increasing year over year.
Square attributes the quarter-on-quarter drop in Bitcoin revenue and gross profits to the “relative instability of Bitcoin’s price, which affected trading activity relative to previous quarters.”
The Cash App allows users to purchase Bitcoins and send money or BTC peer-to-peer in the United States and UK. AppBrain currently ranks it second on the U.S. Google Play Store in terms of finance apps installed, behind crypto.com.
Bitcoin volatility was lower in Q3 than Q2 as the price fell from a previous ATH close to $63,000 to $31,000 in Q2. In Q2, Bitcoin price ranged between $30,000 and $50,000.
According to the earnings report, Bitcoin revenue amounted to $1.82 Billion in the third quarter 2021. Meanwhile, gross profit on Bitcoin amounted to $42 M, which represents 11% and 29% respectively year-over-year growths. This year-on-year growth is partly due to Bitcoin’s price rise.
Cash App is targeting the teens market. Jack Dorsey, a Jack Dorsey tweeter, announced that anyone 13 years old and over can now use Cash App’s peer-to-peer transaction capability. However, they are unable to use it to deposit checks, or to buy Bitcoin. Cash App is now competing with Apple Cash’s family choice. Cash App could be differentiated from other apps, such as Venmo or Apple Cash by adding Bitcoin functionality for teens. This would help to increase profits.
Cash App is now available for everyone 13 and older https://t.co/TeK8uPQ9Tt
— Jack (@jack), November 3, 2021
Cash App achieved solid growth despite the lower Bitcoin revenue in the third quarter 2021, generating $2.39 Billion in revenue and $512 M in gross profit, which is 16% and 33% respectively.
Related: Jack Dorsey’s Square plans open-source Bitcoin mining
Cash App was the subject of headlines this week when Aaron Rodgers, a popular NFL quarterback, endorsed Cash App. He stated that Cash App would accept a portion his salary in Bitcoin.
Square Inc. stock prices have fallen to $237.88 after-hours trading, down 3.87%
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