Payments firm Square detailed its second-quarter profit August 1, revealing $125 million in bitcoin sales through its Cash App, almost doubling a record from first quarter.
“During the quarter, bitcoin revenue benefited from increased volume as a result of the increase in the price of bitcoin, and generated $2 million of gross profit,” the profit report states.
Established by Twitter co-founder Jack Dorsey, Square announced that bitcoin represented exceptionally about half of the whole income on its Cash App, at $260 million, for the second quarter of this year. Bitcoin costs, however, are recorded at $122.9 million in the unaudited quarterly report, yielding the previously mentioned $2 million in profit.
On an investor call on August 1 reporting the numbers, Dorsey stated:
“We love you, bitcoin.”
The first quarter of this year was Square’s best quarter for bitcoin at the time, with $65.5 million in revenue and $832,000 in profit. Clocking $125 million in sales within the second quarter, however, shows noteworthy development and a new record for the firm. For comparison, the company reported $166 million in bitcoin sales in all of last year.
With a net loss for the quarter of $6.7 million on $1.17 billion in total revenue, bitcoin remains a long way away from the center of Square’s overall strategy. Transaction-based revenue in the second quarter topped $775 million, the report stated.
The company offers bitcoin to clients through its Cash App, a service that extended to all 50 U.S. states in August last year.
Earlier this week, the firm explained the role of Square Crypto, a project within the company made to create open-source commitments to the bitcoin protocol and ecosystem.
A senior research executive at market insights firm CB Insights said he trusts including bitcoin is helping Square drive more usage from its clients.
“They don’t really make a lot of money on it, but it is driving engagement,” Chris Brendler stated.