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- Square-owned Cash App has posted a 23 percent drop in Q3, 2021 Bitcoin-generated profits, which it attributes to BTC’s “relative stability.”
- Cash App, however, registered an increase in profits year-over-year and is now venturing into the teenage market in hopes of higher returns.
Jack Dorsey-owned mobile payment service Cash App had a 23 percent drop in quarterly profits generated by Bitcoin (BTC), according to its Q3 earnings report.
Square attributes its reduced Bitcoin revenue and gross profit to the “relative stability of the price of Bitcoin, which affected trading activity compared to prior quarters.”
Notably, Cash App enables users in the US and UK to purchase Bitcoin and make money transfers on a peer-to-peer basis. The platform is owned by Square financial services company, which is headed and co-founded by Jack Dorsey, Twitter’s CEO. Currently, the application is the second-most downloaded finance app on the US Google Play Store, according to AppBrain. Crypto.com comes first.
Cash App Q3 earnings report
That said, Bitcoin has registered increased profits year-on-year. The lead cryptocurrency has posted 337.7 percent gains in a year. BTC also witnessed less volatility in Q3 than Q2. In Q2, BTC fell from a $63,000 record high to about $29,000, while in Q3, the asset has maintained prices between $30,000-$50,000.
Nonetheless, the firm still posted an overall yearly increase in profits accrued from Bitcoin. The platform’s Q3 earnings report shows that Bitcoin revenue topped $1.82 billion, as gross profits reached $42 million. These values represent 11 percent and 29 percent year-over-year increases, respectively. The report further attributes these gains to Bitcoin’s price increases.
In a new move, Cash App is now seeking to further raise its profits by venturing into the teenager market. On Thursday, Dorsey tweeted that “everyone 13 and older” can now use the platform for its peer-to-peer, debit card, and banking abilities. They cannot, however, use the App to deposit checks or buy Bitcoin.
This feature heightens the competition between Cash App, Venmo, and Apple Cash, with the latter boasting a family option. Specifically targeting teenagers sets Cash App apart from the others.
Overall, Cash App demonstrated growth in Q3, 2021 by generating $2.39 billion in revenue and $512 million in gross profit. The figures represent 16 percent and 33 percent increases, respectively.
Side notes
Earlier this week, popular NFL quarterback Aaron Rodgers said he was partnering with Cash App to receive part of his salary in Bitcoin. His endorsement made the App the highlights of headlines in finance market reporters.
I believe in Bitcoin & the future is bright. That's why I’m teaming up with Cash App to take a portion of my salary in bitcoin today.
To make Bitcoin more accessible to my fans I’m giving out a total of $1M in btc now too. Drop your $cashtag w/ #PaidInBitcoin & follow @CashApp pic.twitter.com/mstV7eal04
— Aaron Rodgers (@AaronRodgers12) November 1, 2021
Square’s stock price is down 3.87 percent to $237.88 in after-hours trading, according to MarketWatch. Bitcoin at press time was trading at $61,789, 0.2 percent down in the day and 19.8 percent up in the month, per our data.
