Square's Bitcoin Revenue Rises 1100% In Q3

Square Inc SQ on Thursday said the Bitcoin revenue for its Cash App rose 1100% in the third quarter, compared to the same period a year earlier.

What Happened: The company’s Cash App Bitcoin revenue touched $1.63 billion. The revenue from the apex cryptocurrency has surpassed all other sources of revenue for the app including transaction-based revenue.

Bitcoin takings made up for nearly 80% of the Cash App’s $2.07 billion in revenue. The app saw a gross profit of $32 million in gross profit due to Bitcoin revenue, while the overall gross profit was $435 million for the app.

Square’s Q3 revenue exceeded $3 billion. Bitcoin revenues made up over half of the total revenue in this period.

The fintech company said that Bitcoin revenue and gross profit “ benefited from an increase in [Bitcoin activities] and volume per customer.”

Why It Matters: In the second quarter, Cash App Bitcoin revenue had risen 600% at $875 million. 

In the third quarter, the company’s earnings per share of $0.34 beat estimates of $0.16, while sales estimates of $3.03 billion beat $2.07 billion estimates.

Analysts at JPMorgan Chase had termed a recent $50 million investment of the Jack Dorsey-led company in the cryptocurrency as a “strong vote of confidence for the future of Bitcoin.”

Price Action: Square shares traded nearly 3.7% at $181.70 in the after-hours session on Thursday after closing about 2.4% higher in the regular session.

Related Link: Square Funds Project To Make Cryptocurrency Wallets More Accessible To Everyone