Square Q2 Bitcoin Revenue Up 200% YoY But Pales Compared To Previous Quarter: What You Need To Know

Square Inc SQ said Sunday that it saw “significant growth” in Bitcoin BTC/USD revenue in the second quarter.

What Happened: The Jack Dorsey-led company said Bitcoin revenue rose 3x year-over-year to $2.72 billion in the second quarter of 2021, while gross profit from the apex cryptocurrency was $55 million, or nearly 2% of Bitcoin revenue.

Square said in the Q2 shareholder letter that it believes “bitcoin gross profit better reflects the economic benefits as well as our performance from these [Bitcoin] transactions.”

See Also: How To Buy Square (SQ) Shares

The payments company noted that compared to the first quarter, Bitcoin revenue and gross profit fell due to “relative stability in the price of bitcoin, which affected trading activity compared to prior quarters.”

Dorsey's company also reported a $45 million Bitcoin impairment for the quarter.

On Friday, Square shares closed 3.14% lower at $247.26 in the regular session and fell nearly 0.5% in the after-hours trading. Bitcoin traded 4.59% lower at $39,751.88 over 24 hours at press time.

Why It Matters: In the first quarter, Square’s Cash App revenue came in at $3.5 billion while the gross profit was recorded at $75 million.

Square’s Q2 Bitcoin revenue has fallen 22.28% and the gross profit has declined 26.66% in comparison with the preceding quarter.

See Also: Jack Dorsey Confirms Square Is Launching A Bitcoin Hardware Wallet

Overall, Square reported an increase of 143% in its total net revenue in Q2, which amounted to $4.68 billion for the quarter ended June. In the previous quarter, net revenue amounted to $1.92 billion.

Earnings per share in Q2 was $0.40, while in Q1 earnings per share stood at $0.41.

In Q2, Cash App's gross profits rose to $546 million from $495 million in the previous quarter, representing a 94% growth year-on-year.

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