Jack Dorsey’s Square noted that its crypto-friendly mobile payment app Cash App had registered its best quarter during Q2 2020. Nearly half of the $1,92 billion total revenue came from the company’s Bitcoin trading service. As a result, Jack Dorsey-led Square shares have pumped after hours following the record numbers. The revenue generated by the Cash App from Bitcoin trading has surpassed all previous records.
“Cash App generated $875 million of Bitcoin revenue.”
Square published the Q2 results for its Cash App earlier than expected due to “external access of the company’s quarterly financials.” While marking increases on almost all fronts, the revenue generated from Bitcoin trading has surpassed all previous records. The company stated, “Cash App generated $875 million of Bitcoin revenue and $17 million of Bitcoin gross profit during the second quarter of 2020, up 600% and 711% year over year, respectively. Bitcoin revenue and gross profit benefited from an increase in Bitcoin activities and growth in customer demand.” The report outlined that it reached over 30 million monthly transacting actives in June from all of its features.
“The impressive results could be linked to some extent to the current economic situation.”
The company reported that usually, when new users register, the first products they turn to are the Cash Card, direct deposit, and Bitcoin investing. Square also noted that these rather impressive results could be linked to some extent to the current economic situation prompted by the COVID-19 and the excessive stimulus packages. The report stated, “Compared to June, we saw month-over-month increases in volume per transacting active Cash App customer across peer-to-peer payments, Cash Card, and Bitcoin investing.” “We recognize this increase may be partially driven by government stimulus and unemployment benefits, which may not sustain at the same levels during the remainder of the third quarter, the report further added.
