In its Q3 2020, crypto firm Square reported net revenue of $1.63 billion in Bitcoin sales. The gross profit figure was $32 million for the quarter. Bitcoin earnings for the firm are up nearly 90% from the second quarter and almost ten times from last year. The crypto firm Square registered a humongous revenue in the third quarter through Bitcoin sales. This comes amid the company clocking a $3.03 billion net revenue and nearly $800 million in net profits.
“Square is setting an example for big financial institutions to start offering BTC.”
The Jack Dorsey led payments firm has raked in an astronomic revenue of $1.3 billion from bitcoin sales alone in this quarter as bitcoin’s price reaches the highest level since January 2018. Messari researcher Ryan Watkins said that Square is setting an example for bigshot financial institutions to start offering bitcoin and cryptocurrency products for their customers. Square reportedly played a part in the towering rise in BTC volumes to the surge in its bitcoin sales.
Square physically holds $50 million worth of Bitcoin.
It is also important to note that the payment firm Square physically holds $50 million worth of Bitcoin from its dedicated BTC purchase last month. The firm revealed that in October 2020, they invested $50 million in bitcoin as the firm believe cryptocurrencies are an instrument of economic empowerment and align with their purpose. The firm expects to hold this investment for the long term. “The accounting rules for bitcoin will require us to recognize any decreases in market price below cost as an impairment charge, with no upward revisions when the market price increases until a sale,” the report added. At the time of writing, Bitcoin is changing hands at just above $15,500.
