Square saw Cash App’s gross profit nearly double this quarter, but also posted a $45 million impairment loss on its bitcoin assets, according to a currency update.
Mobile payment platform Cash App reported a quarterly gross profit of $546 million in the 3 months to June 30, a year-over-year increase of 94%, Square said in a letter to shareholders published Sunday night.
The expansion helped bring the overall quarterly profit of Square, whose chief executive is Twitter co-founder Jack Dorsey, to $1. 14 billion, up 91% from last year.
The value of bitcoin has fallen 13% in the 3 months leading up to June 30 and 37% since its peak in mid-April. It stood at $39,776 on Monday at 1221 ET, according to Coinmarketcap. The drop is due to China. La recent crackdown on activities such as buying cryptocurrencies and mining cryptocurrencies, while the withdrawal of regulators on cryptocurrency exchange Binance has also destabilized buyers.
Square provides the ability to send bitcoins immediately and purchase the cryptocurrency so that consumers can do so easily. Your bitcoin revenue reflects the total amount of coin sales the company has made.
In the last quarter, bitcoin cash revenue amounted to $2. 72 billion, 3 times more than in the same era from the previous year. Bitcoin’s gross profit accounted for 2% of cash at $55 million during the era, the company said.
“Compared to the first quarter of 2021, bitcoin revenue and gross margin decreased from quarter to quarter, basically due to the relative stability of bitcoin’s price, which affected business activity compared to previous quarters,” Square wrote in the shareholder newsletter.