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Square’s Cash App Q3 Report Attributes 80% of $2 Billion Revenue to Bitcoin

Square’s Cash App Q3 report shows that Bitcoin has overtaken all other revenue sources and accounts for 80% of its entire $2 billion third-quarter revenue.

Square’s Cash App has marked a Q3 Bitcoin (BTC) revenue increase of 1,100% year-over-year, as users have been heavily leveraging its Bitcoin service—with customers purchasing over $1.6 billion in BTC.

Cash App is a payments solution app that also functions as a Bitcoin broker, taking a small commission on users’ purchases. The payments firm derived $1.63 billion from its Bitcoin service.

According to Square’s third-quarter report, Bitcoin revenue was the largest factor equating to 78% of Cash App’s total $2 billion revenue, all other revenue streams accounting for the remaining 22% totaled $453 million.

Square’s report attributes the increased Bitcoin sales to Cash App’s Auto-Invest Tool, which allows users to automate recurring daily or weekly purchases of BTC or traditional stocks.

As mentioned above, Square’s Bitcoin revenue increased by 1,100% year over year—marking $32 million in gross profits for Q3, smashing the previous year of $2.1million.

Including Cash App revenue, Jack Dorsey’s Square is up more than 140% percent since the third quarter of last year—more than $ 3 billion dollars.

Immediately following the release of its Q3 report, Square’s share price surged more than 5% and sits at $175 at the time of writing, slowly working towards its previous all-time high of $190. The Bitcoin price has also surged in the same time period and is now at $15,860.

The report also mentioned the $50 million in Bitcoin—4,709 BTC—that it purchased as a treasury asset. Following the BTC price surge, this investment made only last month in early October is now valued at $73,342,722.

Square's Cash App Generated $1.82 Billion of Bitcoin Revenue

The well-known payment giant Square released its third-quarter financial report, showing that the mobile payment application Cash App under Square achieved $1.82 billion in Bitcoin revenue.

Square Cash App generated $1.82 billion in Bitcoin revenue and $42 million in Bitcoin gross profit in the third quarter of 2021, both increased 11% and 29% year-on-year.

The report stated that part of the year-on-year growth came from the surge in the price of Bitcoin.

The volatility of Bitcoin’s price in the third quarter was much smaller than that of the previous quarter, which dropped from the previous all-time high (ATH) of nearly $63,000 to approximately $31,000 in the previous quarter. Most of the transaction prices are in the range of $30,000 to more than $50,000.

But compared to the previous quarter, Cash App’s Bitcoin revenue and gross profit have both declined. Square Cash App generated $2.72 billion in Bitcoin revenue and $55 million in Bitcoin gross profit in the second quarter of 2021, both increasing by about three times year-on-year.

Profits fell by 23% in the third quarter. The published report stated that this was due to “relative stability in the price of bitcoin, which affected trading activity compared to prior quarters.”

Cash App is a mobile payment service developed by Square, allowing users to transfer funds using a mobile app.

Square’s CEO Jack Dorsey announced on Twitter on November 3 that the cash app will now allow teenagers 13 years of age or older to conduct peer-to-peer transactions, as well as debit cards and bank services for teenagers.

But for the time being, it is not available to deposit checks or buy bitcoins for teenagers.

Aaron Rodgers, the American football quarterback of the Green Bay Packers of the National Football League (NFL), said on Twitter that he will accept bitcoin as part of his salary through square’s cash app on November 2.

French Payment App Lydia Offers Digital Assets Trading Services

French payment processing app Lydia has now integrated support for digital assets trading on its platform.

Through the partnership, as many as 5.5 million Lydia customers will now be able to buy and sell digital assets like stocks, fractionalized stocks, bonds, Exchange Traded Funds (ETFs), and ultimately cryptocurrencies. According to the firm, the support was made possible with the integration with Bitpanda, the Austrian unicorn digital asset brokerage.

The Lydia app looks to set up a precedent for related diverse offerings in the United Kingdom in competition to American payment giants, including Cash App, Paypal, and Robinhood.

The company said the trading approach is licensed and being described as one of the most accessible apps for onboarding new users.

“If you want to buy assets right now, it’s too complicated,” Lydia co-founder and CEO Cyril Chiche told me. “Even just accessing those markets is complicated. It takes you several days to register and verify your account. After that, you have to send money. And then, there are minimum amounts.”

Chiche said the Lydia approach is different as users will be able to connect to the trading app through their existing accounts. Unregistered users will be able to communicate in a few simple taps. The collaboration with Bitpanda showcases the ability of crypto-focused firms to form mutually beneficial business relationships. This trend is essential to drive the mainstream adoption of the crypto industry.

Bitpanda’s integration with Lydia is considered a pioneering attempt by the Austrian digital asset exchange to help legacy fintech firms kickstart their trading journeys. The firm said it has secured a license with the French financial regulator, the AMF, and is looking to solidify its business presence in the European nation.

It is becoming a common occurrence for payments firms to embrace cryptocurrencies. Cash App, Paypal, and Venmo are amongst the common names that come to mind, as major industry players are looking for ways to gain a good market share in the fast-growing cryptocurrency industry.

Image source: Techcrunch.com

Block Q1 BTC Revenue Plunges 51% Amid General Market Turbulence

Block Inc’s Cash App recorded a total Bitcoin (BTC) sale of $1.73 billion in the first quarter of 2022, a figure that plunged by over 51% from the prior quarter.

Cash App comes off as one of the most dominant channels to buy and transact in Bitcoin, cementing its role as one of the pioneers in the fintech space that adopted the premier cryptocurrency.

The growth of the digital currency ecosystem has been very erratic during the quarter and this became visible in Block’s overall performance with respect to the sales and revenue of the digital currency. Atop the declined total sales, the gross profit coming from the sales of the digital currency was pegged at $43 million when compared to this same period last year.

“Cash App generated $1.73 billion of bitcoin revenue and $43 million of bitcoin gross profit during the first quarter of 2022, down 51% and 42% year over year, respectively. On a two-year CAGR basis, bitcoin revenue and gross profit grew 138% and 155%, respectively,” Block said in its shareholder letter. The company was formerly known as Square Inc and at the time, the firm’s performance was known to be boosted by Bitcoin’s growth.

Since the beginning of the year, the volatility in the price of Bitcoin has kept it within the $48,086.84 and $34,378.04 price ranges respectively. The extreme difference in this range is a conservative addition compared to what the premier coin is known to always print.

The general absence of a massive price upsurge, known as a bull run, notably affected the demand for the cryptocurrency as Block said in the shareholder’s letter.

“The year-over-year decrease in bitcoin revenue and gross profit was driven primarily by relative stability in the price of bitcoin during the quarter, which affected consumer demand and trading activity compared to the prior year period. Bitcoin revenue and gross profit were relatively consistent compared to the fourth quarter of 2021.”

Drawing on this reality, the company said future revenue and profit can also be impacted by these trends in relaxed demand.

Block's Q2 Earnings Beat Expectations

Block’s, formerly Square, second-quarter earnings report has exceeded expectations.

Payment firm Block generated $4.4 billion in total revenue in the second quarter of 2022, beating FactSet’s average analyst estimate of $4.3 billion. The company’s mobile payment app, Cash App, made $1.79 billion in bitcoin revenue.

Bitcoin-related revenue declined 6.6% year-on-year from last year’s second quarter due to the cryptocurrency market’s cold winter.

Earnings per share came in at 18 cents, beating analysts’ average estimate of 16 cents.

Cash App is a mobile payment service developed by Square, which allows users to transfer money using a mobile app.

However, Cash App’s bitcoin revenue and gross profit both declined compared to the previous quarter. Square Cash App generated $1.79 billion in bitcoin revenue and $41 million in bitcoin gross profit in Q2 2022, down 34% and 24%, respectively, year over year.

The released report said this was due to “a decline in consumer demand and the price of bitcoin, related in part to broader uncertainty around crypto assets, which more than offset the benefit of volatility in the price of bitcoin during the quarter.”

Although Bitcoin has recently suffered from the cryptocurrency winter, many companies holding it have sold it, such as tesla, but Square has opted to kept it.

As a result, there was a corresponding $36 million impairment on the intangible asset bitcoin investment. However, Square revealed that based on observations of market prices, the fair value of our investment in Bitcoin is as high as $160 million, which is still more than the $127 million above the book value of the investment as of June 30.

This January, Block Inc, formerly known as Square, will begin mining Bitcoin with its mining system based on custom silicon and open source for individuals and businesses worldwide.

Cash App Introduces Bitcoin Transactions via Lightning Network

Payment processing app created by Block Inc, Cash App, has now added support for Bitcoin transactions enabling users to both send and receive Bitcoin via the lightning network.

After its integration with the lightning network in February to allow users to make payments using Bitcoin, Cash App has now added support for transactions via the Bitcoin Lightning Network.

The Lightning Network is a layer-2 solution network built on top of Bitcoin to improve its scalability and enable instant payments across a network of participants.

The Product Lead Michael Rihani initially revealed this announcement when he made a post about it on Twitter. He added, “Cash App now supports both send and receive over lightning. As long as the other wallet supports LN, you should be good.”

According to Michael Rihani, this new feature is only currently available to Cash App users in the United States. In addition, the feature is excluded for residents in New York State, as they won’t be allowed to employ this service.

When some users commented on Micheal’s announcement about the feature on Twitter, they indicated that it wasn’t working. Michael confirmed that the feature is available for both Android and iOS users, and they should either install or update to the latest version of the app.

CashApp started as one of the first mainstream payment apps to support Bitcoin since 2018. “We believe that bitcoin is the world’s best digital, sound money, period,” said Miles Suter, Crypto Product Lead at CashApp. “We believe that Bitcoin is for the people and that in America, Cash App is the financial app for the people.”

In addition to Cash App’s support of the Bitcoin lightning network, the layer 2 solution itself has been growing so well over the years. As reported by Blockchain.News earlier this month, the lightning rework now crossed the 5,000 BTC Benchmark, marking its increase of an additional 2000 BTC in just 1 year.

Cash App Integrates TaxBit for Streamlined Crypto Tax Reporting

Cash App, a mobile payments processor, has integrated tax and accounting software provider TaxBit into its platform to streamline the tax reporting process for Bitcoin users. The integration, which was announced by both companies, allows Cash App users to track their Bitcoin transactions for tax purposes using TaxBit’s platform. TaxBit’s chief operating officer, Lindsey Argalas, stated that their platform simplifies tax reporting for anyone who has integrated digital assets into their investment portfolio.

Cash App launched its Bitcoin trading services in 2018 and introduced BTC deposits the following year. As of now, the company boasts over 10 million Bitcoin users. Its parent company, Block Inc., has generated billions of dollars in Bitcoin revenue over the years. Block Inc. reported $1.96 billion in Bitcoin revenue during the fourth quarter of 2021, according to United States Securities and Exchange filings.

TaxBit, on the other hand, launched TaxBit Network in 2022, which provides crypto traders free tax forms. The industry consortium was launched with over a dozen U.S.-based companies, including PayPal, Coinbase, Binance.US, Paxos, and Gemini. The aim of TaxBit Network is to simplify tax reporting for cryptocurrency traders and investors.

The Internal Revenue Service (IRS) of Washington has set January 23 as the start of the 2022 tax filing season, giving most taxpayers until April 18 to file and pay their taxes owed. In January, the IRS reminded taxpayers of their crypto income reporting obligations, including capital gains from trading, mining, and staking activities.

The integration of TaxBit into Cash App’s services comes as more companies are exploring the potential of cryptocurrency and blockchain technology. As the popularity of digital assets continues to grow, regulators and tax authorities are paying closer attention to the tax implications of crypto investments. Platforms like TaxBit can help investors and traders stay on top of their tax obligations and avoid any potential legal issues.

In conclusion, the integration of TaxBit into Cash App’s services is a positive step for the cryptocurrency industry. It provides a more efficient and streamlined way for Bitcoin users to manage their tax obligations. As the industry continues to evolve, we can expect to see more developments aimed at making crypto investments more accessible and easier to manage.

Former CTO of Square and Creator of Cash App Dies in San Francisco Stabbing

Bob Lee, the former chief technology officer of Square and creator of Cash App, died on April 4, 2023, following a stabbing in San Francisco. Lee was a prominent figure in the tech industry, having contributed significantly to the development of Square and Cash App, two popular payment processing platforms. Lee’s death has come as a shock to the tech community, with many expressing their condolences on social media.

Bill Barhydt, the CEO of Abra, a leading crypto wallet company, confirmed Lee’s death on Twitter on April 5. Barhydt shared a report from a local media outlet that reported on Lee’s death but did not name him. However, Barhydt confirmed that it was indeed Bob Lee who had passed away. Barhydt expressed his grief and described Lee as a “brilliant mind” who had made significant contributions to the tech industry.

Jack Dorsey, the co-founder and CEO of Twitter, also expressed his condolences on the decentralized social media platform Nostr. Dorsey confirmed the news of Lee’s death and described it as “heartbreaking.” Many in the tech community have expressed their shock and sadness at the news of Lee’s untimely passing.

Lee’s contributions to the tech industry are significant, having played a pivotal role in the development of Square and Cash App. Square is a payment processing platform that allows small businesses to accept credit card payments. Cash App, on the other hand, is a mobile payment service that allows users to send and receive money. Lee was the chief technology officer of Square from 2009 to 2013 and is credited with playing a significant role in the company’s success.

Lee’s death has raised concerns about the safety of tech workers in San Francisco. The city has been grappling with rising crime rates, including a spate of violent incidents in recent months. Lee’s death is a tragic reminder of the need for increased security measures to protect the tech community.

In conclusion, Bob Lee’s passing is a significant loss to the tech industry. He was a talented and innovative individual who made significant contributions to the development of Square and Cash App. His untimely death is a reminder of the need for increased security measures to protect tech workers in San Francisco and other cities. The tech community will undoubtedly mourn his passing and remember his legacy.

Jack Dorsey's Block Appoints MIT's Neha Narula to Board of Directors

Block, Inc. (NYSE: SQ), a global technology company with a focus on financial services, announced on July 27, 2023, the appointment of Neha Narula, Director of the Digital Currency Initiative at the MIT Media Lab, to its Board of Directors. This move further solidifies Block’s commitment to leveraging open source software and open protocols to transform the way people move money.

Narula, who has been serving as the Director of the Digital Currency Initiative at the MIT Media Lab since January 2017, brings a wealth of expertise in Bitcoin and open source technology to the board.

Prior to joining MIT, she held a position as a senior software engineer at Google. Narula also currently serves on the Federal Reserve Bank of New York’s Innovation Advisory Council. Her academic credentials include a B.A. in Mathematics and Computer Science from Dartmouth College and a Master’s degree and a Ph.D. in Computer Science from MIT.

“I’ve long admired Block’s focus on building simple, cohesive products that empower people and communities to participate in the financial system,” said Narula. “We share core values around the power of open source software and the ability for open protocols to transform the way people move money. I’m honored and excited to join Block’s board of directors and contribute to the company’s purpose of economic empowerment.”

Block’s Head and Chairman, Jack Dorsey, expressed his enthusiasm about Narula’s appointment, stating, “Neha’s expertise in Bitcoin and open source technology is a great addition to our Board. Neha’s passion for building intuitive, scaled systems to move money across the Internet efficiently fits into our company’s purpose, and we’re excited to have her join our team.”

Block, Inc., formerly known as Square, Inc., is composed of Square, Cash App, Spiral, TIDAL, and TBD. The company is dedicated to creating tools that expand access to the economy. Its integrated ecosystem of commerce solutions, business software, and banking services helps sellers run and grow their businesses.

With Cash App, anyone can easily send, spend, or invest their money in stocks or Bitcoin. Spiral builds and funds free, open-source Bitcoin projects, while TIDAL provides a platform for musicians and their fans to connect more deeply. TBD is building an open developer platform to make it easier to access Bitcoin and other blockchain technologies without having to go through an institution.

Narula’s appointment to the board is expected to further enhance Block’s mission of economic empowerment through the use of open source software and open protocols.

Judge Dismisses Antitrust Suit Against Apple Over Apple Cash

In a significant legal victory for Apple Inc., a lawsuit filed by customers of payment services like Venmo and Cash App was dismissed by US District Judge Vince Chhabria. The claim accused Apple of engaging in monopolistic practices with its Apple Cash service, which plaintiffs argued stifled competition and hindered the introduction of innovative features, such as decentralized cryptocurrency payments.

The lawsuit targeted Apple’s stronghold in the digital payment sector, asserting that the tech giant’s practices were not only anti-competitive but also detrimental to consumer choice and technological advancement. The plaintiffs contended that Apple’s alleged monopoly made it challenging for rivals to offer competitive pricing and enhance functionality, particularly in the realm of cryptocurrency integration.

The dismissal of the case signals a reinforcement of the legal moat around Apple’s business practices, particularly concerning its proprietary services and products. Apple Cash, integrated within the Apple ecosystem, allows for seamless transactions among iOS users, a feature the plaintiffs claimed was designed to edge out competition.

However, Judge Chhabria’s decision to dismiss the case underscores the complexity of antitrust litigation in the tech industry, especially when it involves accusations of stifling competition through in-house services. The ruling may set a precedent that could influence how forthcoming antitrust cases against major tech companies are approached, especially those that have ventured into financial services.

This legal development occurs amidst a broader conversation about the role of big tech companies in financial services and their impact on the competitive landscape. With the rising interest in decentralized financial systems, such as those based on blockchain technology, there is an ongoing debate about how traditional banking services and payment platforms can adapt to include cryptocurrencies and other digital assets.

In light of the dismissal, the future of digital wallet competition remains a contested domain, with big tech firms and fintech startups alike vying for a share of the lucrative market. Apple’s position, supported by this legal outcome, may encourage the company to further integrate its services across its device ecosystem, potentially incorporating cryptocurrency features in the future.

The case also highlights the growing scrutiny of tech giants’ expansion into financial services, as regulators and competitors question the implications for consumer choice and market fairness. While this case against Apple has been dismissed, the intersection of technology, finance, and antitrust law continues to be an area of evolving legal challenges and debates.

The implications of this decision are far-reaching, not just for Apple, but for the entire tech sector, which increasingly finds itself at the crossroads of innovation, regulation, and competitive practices.