Square tripled its profit from Bitcoin sales

In the second quarter of 2021, Bitcoin sales through the Cash App generated revenue of $2.72 billion and gross profit of $55 million for the payments company Square, according to отчетности. A year earlier, these figures were $875 million and $17 million respectively.

The figures for the second quarter were lower than the January–March values ($3.51 billion and $75 million).

Total net income for April–June rose by 143%, to $4.68 billion.

In a letter to shareholders, the company noted the rise in Bitcoin’s price and the related increase in customer interest over the past year. On a quarterly basis, the same factors led to negative momentum in the metrics.

For the second quarter, Square recorded a $45 million loss from impairment of Bitcoins held on its balance sheet. As of June 30, the fair value of the digital gold was estimated at $281 million, $127 million above its carrying value.

Square allocated $50 million for the purchase of its first cryptocurrency in October 2020 and $170 million in February 2021.

In May, CFO Amrita Ahuja stated that the company would refrain from further Bitcoin investments; this information was subsequently denied.

In August, Square announced the purchase of Afterpay’s buy-now-pay-later service for $29 billion. After the deal closes, Square will integrate the app into its acquiring platform and into Cash App.

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