The performance of Bitcoin (BTC) is soaring to new heights leading to its rise that of the Cash App. Indeed, Square’s mobile payment platform said it recorded record bitcoin revenues. The latter alone would represent nearly 80% of all app revenue in the third quarter that is more than all the other products combined. Explanations.
A massive increase of over 1.100% compared to the same period in 2019
Square’s latest quarterly activity report shows revenue of $ 1.63 billion from Bitcoin with Cash App. Compared to the same period in 2019, this represents an increase of more than 1.100%. The report specifies in particular that the performance recorded in bitcoin was partly due to the launch of the Auto-Invest tool on the application. This allows users to in particularrecurring purchase of BTC on a daily or monthly basis.
The success of this tool has thus helped to generate $ 32 million gross profit for the third quarter of the current year. By comparison, this gross profit was only $ 2.1 million in the same period in 2019. The present earnings are all the more impressive when one looks at the full balance sheet of the past year. Bitcoin’s total income then was $ 338 million with gross profit of $ 5 million. A total which will therefore have been greatly exceeded in the third quarter of this year.
An investment that benefits Square shares
In the wake of this earnings release, Square’s share price took the opportunity to climb to 184 dollars, an increase of 6%. It thus approached its previous record of $ 190, similar to what is happening with bitcoin. Cryptocurrency seems to continue its rise calmly brushing past the $ 15,900 mark.
But the main event that connects Square to bitcoin remains the recent investment made by the company. She had put on the table $ 50 million to acquire the equivalent of 4,709 BTC. This acquisition has since grown in value and is currently worth around $ 75 million. “Cryptocurrencies are an instrument of economic empowerment and align with the goal of society. We plan to hold on to this investment for the long term “Had hammered the company, confident to have made the right choice.
It would therefore seem that the success of Cash App and, incidentally, that of Square inevitably depends on bitcoin, which is experiencing a resumption of shape at the end of the year. If Square is only 7e In the ranking of publicly traded companies with Bitcoin holdings, it could shift into high gear as those profits rise.