Square generates $1.82 billion in revenue with bitcoin in the third quarter
Payments company Square released its third quarter 2021 (Q3) results on Thursday (4). The highlight was the increase in revenue from Bitcoin (BTC) operations. According to the company, BTC operations via Cash App generated $1.82 billion in revenue.
As a result, the company posted a gross profit of $42 million in Q3. Both indicators registered an increase of 115% and 29%, respectively, compared to Q3 2020.
In total, Square’s net revenue reached $3.84 billion in the third quarter, an increase of 27% year-over-year. The company’s gross profit reached $1.13 billion, an increase of 43%.
However, the results do not seem to have encouraged the market and Square’s shares registered a drop of 3.48% in the pre-opening of the stock exchange this Friday (5). The papers are priced at $247.46.
However, Bitcoin revenue and gross profit decreased compared to the second quarter. Square highlighted that this is due to the stability in the price of BTC.
“The relative stability in price has affected trading activity compared to previous quarters,” the company said.
Square also noted that BTC revenue and gross profit may fluctuate in coming quarters due to changes in customer demand and the price of BTC. In other words, profits may fluctuate depending on investors’ optimism.
Another reason for the dips was the increase in the comparison bar. After all, Square registered strong growth rates during 2020. The greater the growth, the more the company must continue to grow to keep the indicators high.