Payments giant Square says that Bitcoin transactions have contributed nearly $2 billion to the company’s third-quarter revenue.
In the company’s latest shareholder letter, Square says that the firm’s total net revenue for Q3 2021 was $3.84 billion. Excluding Bitcoin revenue via its Cash App, the figure falls to $2.03 billion.
“Cash App generated $1.82 billion of Bitcoin revenue and $42 million of Bitcoin gross profit during the third quarter of 2021, up 11% and 29% year over year, respectively. On a two-year CAGR (compound annual growth rate) basis, Bitcoin revenue and gross profit grew 250% and 343%, respectively.”
On a quarter-by-quarter basis, Square says it saw a small impairment loss on its Bitcoin holdings due to the large fluctuations in the price of BTC.
“As an indefinite-lived intangible asset, Bitcoin is subject to impairment losses if the fair value of Bitcoin decreases below the carrying value during the assessed period. In the third quarter, we recognized a BTC impairment loss of $6 million on our Bitcoin investment.
As of September 30, 2021, the fair value of our investment in BTC was $352 million based on observable market prices, which is $203 million greater than the carrying value of the investment.”
Square holds Bitcoin on its balance sheet and has also been exploring other ways to gain exposure to the industry. In October, Square CEO Jack Dorsey said the company is considering the possibility of building a BTC mining platform as a way to increase the public’s accessibility to crypto mining.
