Square, the payment startup founded by Twitter founder and CEO Jack Dorsey, made $2.72 billion in bitcoin revenue in the second quarter of this year.
Square said in a shareholder letter released late Sunday Eastern Time that it’s Cash App generated “$2.72 billion in bitcoin revenue and $55 million in bitcoin gross profit during Q2, up approximately 3x year over year.”
However, bitcoin revenue has decreased quarter over quarter, according to Square, which was “primarily driven by relative stability in the price of bitcoin, which affected trading activity compared to prior quarters.” Cash App made $75 million in bitcoin gross profit on $3.51 billion in bitcoin revenues in the first quarter of this year.
Nonetheless, Cash App is poised to grow its user base as a result of Square’s $29 billion acquisition of the Australian payment firm Afterpay, which is listed on the Australian Stock Exchange.
Square said in a separate announcement on Sunday that the acquisition will allow both companies to offer their financial products to a broader range of customers. The transaction is expected to close in the first quarter of 2022.
Afterpay is a payment platform that allows users to receive products first and pay later in installments with no interest if payments are made on time. As of June 30, it claimed to have 16.2 million users.
“Afterpay customers will benefit from Cash App’s financial tools, such as money transfer, stock and Bitcoin purchases, Cash Boost, and more,” Square said in the announcement.
Square also reported a $45 million bitcoin impairment loss on its bitcoin investment in Q2. However, the fair value of its total bitcoin investment since Q4 of last year was $281 million as of June 30, which is “$127 million greater than the investment’s carry value.”
Square’s total net revenue for Q2 was $1.96 billion, excluding bitcoin revenues.
The bitcoin revenue of Cash App represents the total amount of bitcoin sold to customers, while the cost refers to the total amount of bitcoin purchased. Cash App earned money by charging a spread.