$875 million profited by Cash app this second quarter, amidst the pandemic

[cryptomaniac_xxx]

https://twitter.com/kerooke/status/1290796717848354818

Cash app by Square made an astonishing $875 million during the second quarter of 2020. Is this a indication that we are really in a bull run? And I think almost all crypto related business also gain a net profit in the second quarter. But it's really interesting that even though we are still in the pandemic, those money can still be profited.

https://squareup.com/us/en/about/investors

[stompix]

But it's really interesting that even though we are still in the pandemic, those money can still be profited.

Define "profited".

The first number is for revenue, not for profits

https://s21.q4cdn.com/114365585/files/doc_financials/2020/Q2/2020-Q2-Shareholder-Letter-Square.pdf

Cash App generated $875 million of bitcoin revenue and $17 million of bitcoin gross profit during the second quarter of 2020

In the second quarter of 2020, net loss was $11 million. Net loss per share was $0.03 on both a basic and diluted basis in the second quarter of 2020, based on 440 million weighted-average basic and diluted shares. We recognized a gain of $21 million related to observable price changes for non-marketable equity investments. Excluding this impact, net loss was $32 million in the second quarter of 2020

[kryptqnick]

https://twitter.com/kerooke/status/1290796717848354818

Cash app by Square made an astonishing $875 million during the second quarter of 2020. Is this a indication that we are really in a bull run? And I think almost all crypto related business also gain a net profit in the second quarter. But it's really interesting that even though we are still in the pandemic, those money can still be profited.

https://squareup.com/us/en/about/investors

I guess it signifies that some people prefer services that have big names behind them and a certain amount and regulation and centralization. I think Jack Dorsey is having positive impact on Bitcoin, so I'm glad his app is becoming more successful. After all, it's not like it's used only for Bitcoin trading, right? I don't mean that there're fiat options there, I mean that transactions between people are available via Cash App, and this can be useful not only to traders, but also to those treating Bitcoin as money. On another point, I agree with stompix that the info about $875 million is misleading because it's not the profit.

[btc_angela]

While $875 million is the revenue (not the profit), the increase of the revenue itself might means more money are poured by investor/bitcoiner to buy more Bitcoin.
IMO $1200 stimulus check and the fact other investment going downhill might be major factor.

I agree, as we have another round of US stimulus checks coming in, I guess some of them might invest on bitcoin pushing the price again. So it wouldn't be surprising to see big companies making big profits. There is also a news that Amazon, Facebook, Apple and Google are making record revenues even though we have this pandemic, so still business as usual for crypto related services as well.

[Leonardo7]

Their transaction got exponetially increased because of the ability to buy bitcoin using the app. I am still scared though using such app due to centralization and fee, I don't want to get locked out and start a long conversation with customer service. Good for its users and for who are just new to cryptocurrecy, easy to use.

[carlisle1]

https://twitter.com/kerooke/status/1290796717848354818

Cash app by Square made an astonishing $875 million during the second quarter of 2020. Is this a indication that we are really in a bull run? And I think almost all crypto related business also gain a net profit in the second quarter. But it's really interesting that even though we are still in the pandemic, those money can still be profited.

https://squareup.com/us/en/about/investors

It's a good sign that the bull is really gaining momentum, with such interest coming from those people who uses this app it's implied
that there are many people now who are recognizing this industry.

we can definitely see more action and success coming from businesses who offers crypto currencies
as there are more people who seen the value of this investment assets.

[mk4]

Their monthly active users also increased quite significantly; and since it's probably safe to assume that most of their users are on the younger side(hence more likely to be interested in new tech/trends), I think it's just expected that their bitcoin revenue spiked up as well. Still went up higher than expected though.

If anyone is interested in their recent statistics: https://s21.q4cdn.com/114365585/files/doc_financials/2020/Q2/2020-Q2-Shareholder-Letter-Square.pdf

[Upgrade00]

it's implied that there are many people now who are recognizing this industry.

It depends on what you mean by recognized, Bitcoin has become quite popular and there's a huge probability that anyone who uses the web would have heard of it. This interest is likely an aftermath of the upward price movement, this would indicate interest in the value of Bitcoin rather than the fundamentals and technology behind it. I came across a post a couple of days back which suggested a drop in monthly active users on the forum, this is in contrast with more activity happening within more financial focused industries related with Bitcoin.

It's however a common scenario during upward price movements and also has an effect in pushing the value higher.

[buwaytress]

As stompix points out, all these unicorns posting crazy revenue doesn't mean shit. A lot of fintech unicorns just want to do that, and don't care about profit because it's all about stock valuations (they make money off stocks, crazy isn't it?).

That said, previous Cash app profits have been in the black, just a really tiny percentage of revenue. Crazy isn't it? And so yawn;)

[dothebeats]

Revenue is hugely different from profits. While they saw a massive surge in users and interest on their app, that doesn't equate to profits at all. Anyway, the huge surge of users on cash app can be attributed to a lot of "influencers" marketing the said app, and have been promoting the said app for months now. Influencers with huge following base tend to influence 'some' aspects of the economy just by their words alone, which shows you how gullible and blind people can be as long as their favorite persona says something on something. Add to that the stimulus fund that the US generously gave to its population. Reports say that people bought bitcoin with that money seeing how stable and how strong the cryptocurrency stood amid the dropping stocks. Cash app is an avenue to that, hence why a lot of people flocked on the app and made their purchase.

[zasad@]

https://cryptonaute.fr/square-bat-record-vente-bitcoins-t1-2020/
https://s21.q4cdn.com/114365585/files/doc_financials/2020/Q1/2020-Q1-Shareholder-Letter-Square.pdf
7 million in profit with 306 million in revenue for the first quarter of 2020

Cash App generated $875 million of bitcoin revenue and $17 million of bitcoin gross profit during the second quarter of 2020

News draws beautiful pictures, and if you understand the details, then not everything is so sweet.
But the positive dynamics of demand for bitcoin has a good effect on the market.

[AmoreJaz]

Revenue is hugely different from profits. While they saw a massive surge in users and interest on their app, that doesn't equate to profits at all. Anyway, the huge surge of users on cash app can be attributed to a lot of "influencers" marketing the said app, and have been promoting the said app for months now. Influencers with huge following base tend to influence 'some' aspects of the economy just by their words alone, which shows you how gullible and blind people can be as long as their favorite persona says something on something. Add to that the stimulus fund that the US generously gave to its population. Reports say that people bought bitcoin with that money seeing how stable and how strong the cryptocurrency stood amid the dropping stocks. Cash app is an avenue to that, hence why a lot of people flocked on the app and made their purchase.

not bad news after all in the crypto community. however the OP should change its title thread as revenue not profit, as it is misleading. but the increase of its users is actually great news. more users, more demand and so it will have an impact in bitcoin market. i wont definitely say no to this news! people are really going digital these days.

[davis196]

I don't find this news surprising at all.
A tech company increases it's revenue and profits during the time of pandemic/lockdowns/quarantine.
All the tech companies will grow,while all the "Brick and Mortar" companies will suffer,we've been talking about this since March.It was pretty much expected and it's happening now.
Should we prefer Cash App over Paypal,just because of Jack Dorsey?I don't trust both.If Jack Dorsey was such a big crypto supporter,then Square/Cash App would have already adopted crypto payments.

[Daltonik]

I will update the thread with Square's report for the 3rd quarter of 2021: $1.82 billion of revenue in bitcoins and $42 million of gross profit in bitcoins was received by Square from the sale of bitcoin through the Cash app in the third quarter of 2021, which is 11% and 29% more compared to the same period last year, respectively.

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.