Square's Q2 bitcoin revenue doubles at $125M via Cash App

Payments firm Square has generated a total of $125 million in Bitcoin revenue in the second quarter of this year via its mobile payments service Cash App.

“During the quarter, bitcoin revenue benefited from increased volume as a result of the increase in the price of bitcoin, and generated $2 million of gross profit,” as per its earnings report.

Founded by Twitter co-founder Jack Dorsey, Square revealed that bitcoin comprised nearly half of the Cash App’s total revenue at $260 million for Q2 in 2019. In the unaudited quarterly report, the costs of bitcoin were listed at $122.9 million, thus producing the $2 million profit.

Excluding Bitcoin, Cash App has attained significant scale, generating $135 million in subscription and services-based and transaction-based revenue.

The significant growth from the latest quarter brings in a new record for Square. In the first quarter of this year, the firm only clocked in $65.5 million in sales and $832,000 in profit. Moreover, the company only reported $166 million in bitcoin sales in the entire 2018.

Overall, Square reported a 44% growth year over year in total net revenue for the second quarter of 2019.

The report follows after Square Crypto’s manager Steve Lee revealed that its team is not focused on improving the functionality of Cash App but rather on bitcoin. He also shut down speculations that the crypto business is planning to launch its own cryptocurrency.