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Square’s Cash App Generates $1.8 Billion in Bitcoin Revenue, BTC Profit up 29% in Q3

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Square’s Cash App Generates $1.8 Billion in Bitcoin Revenue, BTC Profit up 29% in Q3

Square’s Cash App Generates $1.8 Billion of Bitcoin Revenue, BTC Profit up 29% in Q3

Square Inc. has reported bitcoin revenue of $1.82 billion in the third quarter, an 11% increase from the same period last year. Its bitcoin gross profit was $42 million during the time period, a 29% increase year-over-year.

Square’s Bitcoin Profit up 29% in Q3

In the company’s Q3 2021 Shareholder Letter, published Thursday, Square Inc. reported total net revenue of $3.84 billion in the third quarter, up 27% year-over-year.

The company’s bitcoin revenue is generated from its mobile payment service, Cash App. The platform generated $2.39 billion in revenue and $512 million in gross profit in Q3, a 16% and 33% increase year-over-year, respectively. Square wrote:

Cash App generated $1.82 billion of bitcoin revenue and $42 million of bitcoin gross profit during the third quarter of 2021, up 11% and 29% year over year, respectively.

Bitcoin gross profit accounted for approximately 2% of Square’s total bitcoin revenue in Q3. The company explained that bitcoin revenue is the total sale amount of bitcoin to customers, adding that bitcoin costs are the total amount of bitcoin that it purchases. “We purchase bitcoin to facilitate customers’ access to bitcoin,” the company said.

Compared to the second quarter, however, Square’s bitcoin revenue and gross profit decreased on a quarter-over-quarter basis, the company detailed, adding that it was “driven primarily by relative stability in the price of bitcoin, which affected trading activity compared to prior quarters.”

Furthermore, the company warned that in future quarters, “bitcoin revenue and gross profit may fluctuate as a result of changes in customer demand or the market price of bitcoin, particularly as we lap strong growth rates on a year-over-year basis in the fourth quarter of 2020.”

Square further noted that it invested $50 million in bitcoin in the fourth quarter of last year and $170 million more in the first quarter of this year. In the third quarter, the company recognized an impairment loss of $6 million on its bitcoin investment. Square wrote:

As of September 30, 2021, the fair value of our investment in bitcoin was $352 million based on observable market prices, which is $203 million greater than the carrying value of the investment.

What do you think about Cash App’s bitcoin revenue? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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GamingShiba Becomes CoinMarketCap’s Most Trending Token

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GamingShiba Becomes CoinMarketCap’s Most Trending Token

Streaming, NFT, and metaverse project GamingShiba (GAMINGSHIBA) overtook bitcoin on Wednesday to secure CoinMarketCap’s most trending token. 

The meme coin’s top trending status comes in the same week that Shiba Inu (SHIB) announced its own metaverse project, creating a potential point of confusion for investors seeking to FOMO in. Despite strong similarities in appearance and name, GamingShiba has no relation to Shiba Inu.

GamingShiba is a microcap meme coin, which according to their website holds aspirations to create, ‘a binding bridge between Gamers, Streaming platforms, NFTs and Metaverse’. In a request for further information, GamingShiba says they will “only reveal how they will create this bridge once the project has reached 100,000 holders.”

A tweet on Wednesday declared that the project currently has over 45,000+ unique addresses so investors may have a little time to wait for further information. 

GamingShiba topped the CoinMarketCap trending charts on Wednesday (Source)

The streaming/gaming/NFT/Metaverse project also describes itself as ‘your virtual dog’ and offers the following food for thought on its homepage:

“The modern technology and contemporary ambient that the internet created can not be imagined to function as a whole without cryptocurrency. The impact that the cryptocurrency has on a global scale is astronomical in the sense of being the generator of almost every development and especially the latest one.”

Comparing Shiba Inu and GamingShiba


This seems very familiar

Besides strong similarities in both appearance and name, the development of Shiba Inu’s own metaverse has created fresh point of overlap between the two Shiba-themed projects.

On Monday Shiba Inu teased the launch of the Shiberse in 2022, which the company hails as ‘An immersive experience for our ecosystem’. The Shiba Inu team promises further details at a later date.

In December of 2021 it was revealed that Shiba Inu has a multiplayer collectible card game in the works with development outsourced to the Australian gaming company PlaySide Studios. The final game is expected to be delivered in Q1 2023. 

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Gold, Stocks, and Bitcoin: Weekly Overview — January 27

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Gold, Stocks, and Bitcoin: Weekly Overview — January 27

This week’s overview of price movements for Bitcoin (BTC), gold, and our stock pick Google-parent Alphabet Inc.

BTC

The price of Bitcoin (BTC) in January has gone from bad to worse. Already having dropped coming into the new year, BTC was trading around $44,000 on January 13.

Over the next few days it traded down to $43,000 before reaching $42,000 by January 20. However, after a brief spike, BTC proceeded to plummet into the following days, hitting as low as $34,000 on January 22, and $33,000 on January 24. Buying pressure then returned pushing it back up to $37,000, and as high as $38,000 by January 26.

It is currently trading below $37,000.

According to Caxton market intelligence head Michael Brown, Bitcoin’s recent decline reflects the “institutionalization” of crypto assets, in the sense that they are increasingly traded like other risky assets.

“Unsurprisingly, given that the ‘easy money’ party is now coming to an end, it is the most risky assets — crypto – that are bearing the brunt of the market’s ire,” he said. “With the Fed likely to ramp up the hawkish commentary in upcoming remarks, further downside looks likely.”

GOLD

While gold had a good past week, it has since dropped below last week’s lows. On January 13, the price of gold was roughly $1,824. Over the next few days it traded down to $1,812 by January 19, when it suddenly spiked up to $1,840. Hitting $1,848 on January 20, gold traded down a bit before pushing back up to $1,852 by January 25.

However, by the next day, the price of gold plummeted and is now trading around $1,796.

Gold prices extended losses to a more than one-week low, while the U.S. dollar and Treasury yields rallied, following U.S. Federal Reserve Chairman Jerome Powell signaling an interest rate hike in March. That sent U.S. Benchmark 10-year yields close to one-week highs while the dollar rose to its strongest in over a month.

“The reaction was normal in the sense that Chairman Powell stressed the strength of the economy and the determination to fight inflation,” said Commerzbank commodities analyst Carsten Fritsch.

GOOG

Alphabet has had a pretty dismal start to the new year. Starting out 2022 at around $2,900, Alphabet started falling by January 5 and reached roughly $2,740 by January 7. After gapping down the next trading day GOOG proceeded to push up the next two days, eventually gapping up to $2,850 by January 12. That momentum had reversed the next day, with GOOG gapping down to $2,740 by January 18, then continuing falling, gapping down again to $2,550 by January 24.

Since then however, GOOG has recovered a bit, and is currently trading around $2,640.

Earlier this week, YouTube announced it was considering adding non-fungible tokens (NFTs) to its features for creators this year, according to a letter from the CEO. The letter marks the first time ​​YouTube’s owner, Alphabet Inc.’s Google, has announced integration with the cryptocurrency collectibles.

“We’re always focused on expanding the YouTube ecosystem to help creators capitalize on emerging technologies, including things like NFTs, while continuing to strengthen and enhance the experiences creators and fans have on YouTube,” Chief Executive Officer Susan Wojcicki wrote in her annual letter to creators.

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House members urge US Treasury Secretary to clarify definition of broker in infrastructure law

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House members urge US Treasury Secretary to clarify definition of broker in infrastructure law

“We must ensure requirements imposed on the digital asset ecosystem are both crafted and implemented in such a way to ensure the United States remains at the forefront of financial innovation,” said the letter to Janet Yellen.

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House members urge US Treasury Secretary to clarify definition of broker in infrastructure law

A bipartisan group of members from the U.S. House of Representatives called on Treasury Secretary Janet Yellen to clarify the language in the infrastructure bill signed into law in November around the definition of “broker.”

In a Wednesday letter, House Financial Services Committee ranking member Patrick McHenry and ten other representatives urged Yellen to reference the Keep Innovation in America Act to “ensure that any future guidance” in the November infrastructure bill would provide “the necessary clarity to the digital asset ecosystem.” In addition to the reporting requirements, the lawmakers said that the Treasury Department should narrow the scope of the information a broker can capture, as it would risk “the creation of an unlevel playing field for transactions in digital assets and those required to provide them.”

— Financial Services GOP (@FinancialCmte) January 27, 2022

According to the House members, the current wording of the law would potentially allow the Treasury to interpret which companies and individuals in the crypto space qualify as a “broker,” creating a burden of reporting information to the government they may not necessarily have. This would seemingly require miners, software developers, transaction validators and node operators to report most digital asset transactions worth more than $10,000 to the Internal Revenue Service.

“As nascent financial technologies develop, we must ensure requirements imposed on the digital asset ecosystem are both crafted and implemented in such a way to ensure the United States remains at the forefront of financial innovation,” said the letter to Yellen. “We believe consistent information reporting on digital asset transactions is necessary. However, it should not prevent these technologies and the ecosystem from continuing to flourish due to unclear regulations that only create uncertainty.”

Related: US Congressman calls for ‘broad, bipartisan consensus’ on important issues of digital asset policy

The appeal to the U.S. Treasury Secretary mirrors that of an December letter from six senators claiming the infrastructure law contains an “overly-broad interpretation” of what a broker is and requesting Yellen provide guidance to correct the perceived error. Senators Rob Portman, Cynthia Lummis, Mike Crapo, Pat Toomey, Mark Warner and Kyrsten Sinema urged Yellen to provide a set of rules clarifying the wording “in an expeditious manner.” Lummis and Senator Ron Wyden also attempted to pass legislation that would have changed the tax reporting requirements to “not apply to individuals developing blockchain technology and wallets” on Nov. 15 when the bill was signed into law by President Biden.

To date, none of the proposed measures clarifying the wording in the law have gotten enough support to enact change. Many lawmakers and crypto advocacy groups have expressed concerns that if the law is implemented as is, it could threaten the United States’ position as a nation encouraging the development of innovative technology.

“Our innovators and entrepreneurs can’t wait,” said McHenry. “Secretary Yellen must provide much-needed clarity so this nascent industry can flourish here in the U.S.”

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