Cash App Remains Square’s Cash Cow, Nets in Almost 80% Revenue for Q3 Earnings From Bitcoin

1. Cash App remains Square’s cash cow, nets in almost 80% revenue for Q3 earnings from Bitcoin Jack Dorsey's Square files for Q3 earnings with U.S. SEC, Bitcoin contributes more than 75% to the Cash App's revenue. Cash App, a spinoff from Square payment technology firm, continues to rake in profits for the tech giant. In Square’s latest Q3 earnings ​filed with the SEC, Cash App’s record-breaking revenue had more than 75% coming from Bitcoin sales offerings alone. The exact figure for Cash App’s Q3 earnings from ​bitcoin alone is $1.63 billion. Comparing this viz-a-viz last year Q3 earnings, it jumped by over 1,100%. Even more impressive is that total Q3 earnings for Cash App were $2 billion. Meaning, other sources of revenue totalled $453 million summing up to 22% of the entire inflow.

2. Since Cash App introduced the Auto-investment tool allowing its growing stream of customers to purchase and top up their bitcoin holdings on a daily or weekly basis, its revenue has surged as Q3 reports show. On the overall, Cash App functions as a broker for users who seek to purchase Bitcoin. For this service, it charges a small fee as commission. This is proving to be an insanely perfect business model for the firm. For instance, its bitcoin revenue for 2020 generated as much as $32 million in gross profit. By means, this surpassed its previous year gross profit by 15 times which was $2.1 million. Cash App earnings via Bitcoins impacting the overall share price of Square Recall that Square recently invested 1% of its treasuries into bitcoin. It acquired 4,709 BTC in October at $50 million. This has grown to become at least $72 million with the current rising spate of bitcoin price. Consequently, Square’s Q3 earnings broke $3 billion, surpassing its 2019 figures by 140%. And of this 140%, bitcoin made up for more than half. This is especially coming at a time when many companies irrespective of the recent stock market rally before the 2020 US Elections took a beating. While the Cash App may be raking in the billions for Square in terms of revenue, it is equally impacting the stock price of its parent company. Just hours after Square published its Q3 reports, its share price rose by 6% from $173 to $184. At this pace, it may reach and possibly surpass its all-time high of $190. And for those who are sceptical about Square possibly dumping and taking profit from its recently acquired bitcoin, Square had this to say: “We expect to hold this investment for the long term.” Read More: https://cryptodose.co/cash-app-nets-in-almost-80-revenue-for-q3-earn ings/