Square Inc.’s Bitcoin revenue in the third quarter was $1.82 billion, an increase of 11% over the same period last year. During this period, its Bitcoin gross profit was US$42 million, a year-on-year increase of 29%.

Square’s Bitcoin profits increased by 29% in the third quarter

In the company’s third-quarter 2021 shareholder letter issued on Thursday, Square Inc. reported a total net income of US$3.84 billion in the third quarter, a year-on-year increase of 27%.

The company’s Bitcoin revenue comes from its mobile payment service Cash App. The platform generated US$2.39 billion in revenue and US$512 million in gross profit in the third quarter, up 16% and 33% year-on-year, respectively. Square wrote:

Cash App generated $1.82 billion in Bitcoin revenue and $42 million in Bitcoin gross profit in the third quarter of 2021, an increase of 11% and 29% year-on-year, respectively.

Bitcoin gross profit accounted for approximately 2% of Square’s total Bitcoin revenue in the third quarter. The company explained that bitcoin revenue is the total amount of bitcoins sold to customers, adding that bitcoin cost is the total amount of bitcoins it buys. “We buy Bitcoin to make it easier for customers to use Bitcoin,” the company said.

However, compared with the second quarter, Square’s Bitcoin revenue and gross profit declined quarter-on-quarter, the company explained in detail, adding that this was “mainly due to the relative stability of bitcoin prices, which affected trading activities.” Quarter. “

In addition, the company warned that in the next few quarters, “Bitcoin revenue and gross profit may fluctuate due to changes in customer demand or Bitcoin market prices, especially when we are in the fourth quarter of 2020.”

Square further pointed out that it invested US$50 million in Bitcoin in the fourth quarter of last year and another US$170 million in the first quarter of this year. In the third quarter, the company confirmed that its Bitcoin investment had suffered an impairment loss of $6 million. Square wrote:

As of September 30, 2021, based on observable market prices, the fair value of our Bitcoin investment was US$352 million, which is US$203 million higher than the book value of the investment.

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