On Thursday, Square announced a roughly 60% increase in third-quarter gross profit, owing to an increase in Bitcoin transactions on its peer-to-peer payment service Cash App.
In the quarter ended September 30, the payments business, which is acquiring purchase now, pay later pioneer Afterpay for $29 billion (approximately Rs. 2,15,282 crore), reported a gross profit of $1.13 billion (about Rs. 8,388 crores).
Bitcoin income earned by Cash App was $1.82 billion (approximately Rs. 13,509 crores), up 11% from the previous year.
However, Square, located in San Francisco, claimed that Bitcoin revenue and gross profit fell from the previous quarter as the cryptocurrency’s price remained relatively stable, resulting in lower trading activity. As of November 5 at 6:02 p.m. IST, the price of bitcoin in India was Rs. 49.22 lakh.
The firm, founded by Twitter CEO Jack Dorsey, has profited in the past year from a surge in e-commerce demand from individuals remaining at home due to the epidemic.
Its gross payment volumes, which are a measure of how much money was spent on Cash App, increased by 27% to $3.7 billion (roughly Rs. 27,464 crores). Total net sales increased by 27% to $3.84 billion (roughly Rs. 28,503 crores).
Dorsey has been a strong advocate for Bitcoin and other cryptocurrencies. When the world’s oldest cryptocurrency was selling at over $62,000, Square’s investment of $220 million (nearly Rs. 1,650 crores) was allegedly increased to around $470 million (roughly Rs. 3,526 crores) (roughly Rs 46.52 lakhs).
Square possesses roughly 8,027 Bitcoins, according to a report in Bitcoin Magazine, purchased for a total of $220 million and an average price per Bitcoin of $27,407 (Rs. 20.56 lakhs), inclusive of fees and expenditures.
In October 2020, Square revealed that it has acquired 4,709 Bitcoins for a total of $50 million (approximately Rs. 375 crores). The corporation stated in its full-year 2020 report that it had acquired about 3,318 Bitcoins for a total purchase price of $170 million (roughly Rs. 1,275 crores). Square has bought its Bitcoin for the lowest average price per coin, according to the research, compared to the two corporations whose Bitcoin investments recently quadrupled — MicroStrategy and Tesla.