Payments firm Square said in its third quarter earnings letter Thursday that its peer-to-peer payment service Cash App generated $1.82 billion of bitcoin revenue in the quarter and $42 million of gross profit, up 115% and 29% year-over-year, respectively.
- Bitcoin revenue and gross profit decreased in the third quarter versus the second quarter, however, Square said, citing the “relative stability in the price of bitcoin, which affected trading activity compared to prior quarters.”
- Square also noted bitcoin revenue and gross profit may fluctuate in future quarters given changes in customer demand and bitcoin’s market price. It said that that may be particularly the case “as we lap strong growth rates on a year-over-year basis in the fourth quarter of 2020.”
- Square’s total net revenue was $3.84 billion in the third quarter, up 27% year over year, while gross profit was $1.13 billion, up 43% year over year.
- Shares of Square fell about 3% in postmarket trading following the release of its Q3 results.
UPDATE (Nov. 4, 20:51 UTC): Added overall quarterly results in third bullet point.