- Cash App generated a whopping revenue of $2 billion in the third quarter of 2020.
- Over 80 percent of the revenue was generated through its Bitcoin service.
Cash App, the crypto-friendly mobile payment service of Jack Dorsey’s Square Inc., recorded an exponential kind of growth in Bitcoin revenue. Following the quarter three market letter to shareholders, the mobile payment app generated about $2 billion in revenue, most of which was realized from its Bitcoin services. The growth was attributed to the cryptocurrency’s massively growing price in recent weeks, if not a month.
Cash App swimming in Bitcoin profit
Per the information, the Bitcoin-friendly payment app generated about $1.63 billion within Q3 alone. Additionally, the period’s gross profit totaled to $32 million, which represents a 15x increase from the previous record in the past year. The reported Cash App’s revenue from Bitcoin accounts for more than 80 percent of its revenue for Q3. According to Square, the revenue is more than 10x bigger than the previous record in the past year.
In total, the crypto-friendly app delivered total revenue of $2.07 billion. Excluding the Bitcoin revenue, only $435 million was generated as revenue from other sources, accounting for about 174 percent growth from the previous record in the past year. Overall, Cash App’s $2.07 billion revenue in Q3 represents a year-over-year (YoY) increment of 574 percent. The gross profit generated within the quarter also peaked by 212 percent YoY to $385 million.
As explained, the exponential increment in the app’s gross profit and revenue came as a result of the ongoing Bitcoin bullish rally. For context, the largest cryptocurrency by market capitalization traded in the past days at the $13,000 level but surged yesterday to over $15,000, making another all-time yearly high of about $15,900. Aside from the growing price of the cryptocurrency, the company also attributed the revenue increase to the volume of its customers.