Jack Dorsey’s Square reported a 20% increase in Bitcoin revenue during the second quarter of this year (YoY).
The company announced the impressive earnings figures in its second-quarter shareholder letter on August 1. Square’s total gross profit increased 91% YoY to $1.14 Billion in the report.
Bitcoin services generated $2.72 billion in revenues for the app with a gross profit $55 million. These are respective increases of 210% & 223%, respectively, year-on-year. Cash App made a total gross profit of $546 millions, an increase of 94% YoY.
“Bitcoin revenue, gross profit and profits benefited year-over-year from increases in bitcoin’s price and bitcoin activities and growth in customer demands.”
However, Bitcoin revenue and profit fell 22.3% compared to the previous quarter.
Square blamed the lower performance on the greater than 50% retracement experienced by wider crypto markets in May and June.
Square also reported an impairment loss in the amount of $45 million for Bitcoins it holds. Because Tesla’s Bitcoin (BTC), is an “intangible asset”, accounting rules require that Square report an impairment loss when its price falls below its cost basis. Square does not have to report any increases in its intangible assets until they are sold.
According to Bitcoin Treasuries, Square currently holds 8,027 BTC worth an estimated $320 million at the time of writing.
Square recently bought 3,318 BTC in February for $170 million, adding to its initial purchase of 4,709 BTC in October 2020.
On July 30, Cointelegraph reported that mobile software firm MicroStrategy pledged to buy more BTC despite an impairment loss of $425 million on its Bitcoin stash for Q2. Tesla also reported an impairment loss of $23 million for the quarter.
