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Square bought more Bitcoins, purchased $170M worth of BTC again.

Square Cash App Sees Bitcoin Profits Swell 785% in 2020
  • The company reported on Tuesday its latest bitcoin investment combined with its fourth-quarter profits report.
  • However, more than 3 million bought or sold Bitcoin on the app for the whole of 2020.
  • Additionally, Square stated Tuesday it had bought 3,318 BTC to its bitcoin treasury.

According to Square‘s earnings report filed with the SEC, the company gained $4.57 billion in bitcoin revenue in 2020. In line with this, $97 million of that goes to the firm in gross profit.

Square reported that the revenue it made from selling bitcoin on Cash App added 48% of total consolidated profit in 2020. Also, 85% of the total increase in combined net revenues in 2020.

The company attributed the increase to the bitcoin bull run and growth in bitcoin customers, and volume of transactions per customer. In retrospect, Bitcoin hit an all-time high of $57,000 last week.

In its earnings report, Square said:

During the full year 2020, we saw significant growth in bitcoin revenue year over year. While bitcoin revenue was $4.57 billion in 2020, up approximately 9x year over year, bitcoin gross profit was only $97 million, or approximately 2% of bitcoin revenue.

Furthermore, the firm also said that Bitcoin revenue and gross profit increased bitcoin activities and customer demands. Also, there is a significant year-over-year (YoY) rise in the market price of bitcoin.

Square CEO Jack Dorsey also added that they will focus on increasing transaction limits across the Cash App system. Besides, he said they would double down on their duty to bitcoin. Thus, they will look for new ways to connect their products within the Cash App.

“We’ve continued to see strong adoption with 3 million customers [buying bitcoin] through the past year, and in January, we saw 1 million new to bitcoin in just one month,” said Square Chief Financial Officer Amrita Ahuja.

Additionally, Square stated Tuesday it had bought 3,318 BTC to its bitcoin treasury. The $170 million investment comes in addition to a $50 million bitcoin investment in October 2020.

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A Computer Engineering graduate who writes news focuses on cryptocurrency-related and blockchain technology. He is enjoying using his skills to contribute to informing people of the exciting technological advances that happen every day.