Square earns $3.51 billion from Bitcoin sales via Cash App in Q1 2021

In the first quarter of 2021, Bitcoin sales through the Cash App delivered the payments company Square $3.51 billion. This is stated in a letter to shareholders.

The figure is twice Square’s Cash App revenue in Q4 2020 ($1.76 billion) and 11 times the first-quarter 2020 figure ($306 million).

The company’s gross profit from its Bitcoin business in Q1 2021 was $75 million — 7.7% of the total $964 million.

Square’s total revenue for the first three months of 2021 reached $5.06 billion. Revenue from digital-currency sales accounted for 70% of that amount.

“Bitcoin revenues and gross profit rose due to year-over-year increases in the asset’s market price, our investments and growing consumer demand. We recognise that in the future this figure may fluctuate,” the document notes.

Square also reported on the carrying value of its digital-gold assets:

“In Q1 2021, due to a decline in Bitcoin’s price we recorded a loss of $20 million. As of March 31, the fair value of our Bitcoin investments stood at $472 million, which is $272 million above their carrying value.”

In October 2020, Square invested in Bitcoin $50 million. In February 2021, the payments company additionally acquired about 3,318 BTC for around $170 million.

As of December 31, 2020, Square allocated 5% of its cash reserves to Bitcoin.

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