With the decrease in Bitcoin demand, the share price of Square decreased by over 3% in after-market trading.
Square, American financial services company, has announced its financials for Q3, 2021. The gross profit of the company, $1.13 billion, increased by 43% compared to the previous year.
The gross profit of Cash App, a mobile payment service developed by Square, Inc, is $512 million. That is 33% higher than the previous year but it is also 6% lower than quarter 2 of 2021.
The net revenue of Square, the company led by Jack Dorsey, Twitter founder, is $3.84 billion. That is a 27% increase compared to the last year. Also, there is another $1.81 billion generated from Bitcoin. Although the revenue of Bitcoin jumped by 11% year over year, there was a significant decrease compared to the previous year.
In the second quarter, the platform generated $2.72 billion from its Bitcoin transactions, which is a 200% growth. Since Square reports all of its Bitcoin sales as revenue, its revenue originating from Bitcoin seems astronomic.
The focus is Bitcoin
The introduction of Bitcoin selling and buying services to Cash App customers is first done in 2018. Amrita Ahuja, Chief Financial Officer of Square, stated that they are now building other Bitcoin products apart from trading services. However, she said that the focus would be on Bitcoin rather than other cryptocurrencies.
Furthermore, the company reached an EBITDA of $233 million in the quarter. It seems like an increase of 28%. However, there was a significant drop from the $360 million, EBITDA of the previous year.