Square sees 23% drop in Bitcoin profits despite its bitcoin revenue being up year over year but still down compared to Q2 so let’s read more in our latest Bitcoin news today.
Payments company Square announced in its Q3 earnings statement that its BTC revenue reached $1.81 billion marking an 11% increase from last year from the trading on its Cash App. The company said that the profits from its bitcoin investments were, therefore, $42 million or 2% in bitcoin revenue while the $1.81 billion in revenue from BTC trading seemed impressive but it essentially was a decrease of 23% when compared to the previous quarter. In the second quarter, the company generated $2.72 billion in BTC revenue and profits of $55 million so the reason was that because the stability in the crypto’s price drove down the trading activity or in other words, Bitcoin’s price was not really moving much so people were less interested in trading the crypto:
“Bitcoin revenue and gross profit benefited from year-over-year increases in the price of Bitcoin and number of Bitcoin activities. Compared to the second quarter of 2021, Bitcoin revenue and gross profit decreased on a quarter over-quarter basis, driven primarily by relative stability in the price of Bitcoin, which affected trading activity compared to prior quarters.”
Square sees 23% drop in BTC profits but Jack Dorsey, the CEO, said that the total net revenue jumped 27% to $3.84 billion marking a $1.13 billion in gross profits. Square added that Cash App, as the mobile app that allows users to buy BTC, delivered some strogn growth as a whole for the company and generated $2.39 billion of revenue and $512 million of gross profit with a 16% and 33% year over year rise. Squares stocks closed trading on the day with a drop of 2%.
As recently reported, Square reveals plans to build a decentralized Bitcoin exchange as the CEO of the platform Jack Dorsey revealed and helped onboard more users into BTC thanks to his initiative. Square’s new TBD division is working on a BTC-centric decentralized exchange and the planned DX will be permissionless and open-source but will allow users to fund any wallet using fiat currency. Square’s Cash app is a popular way for people to buy and sell BTC but the CEO of the platform has a huge love for the leading cryptocurrency and the financial services company now plans to do a lot more in this space. Dorsey announced a new BTC-centric division called TBD and he revealed that this is going to be a decentralized exchange of sorts.
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