Square Customers Buy $2.72 Billion Worth Of Bitcoin In Q2
In a new shareholder letter published Sunday, payments giant Square revealed customers bought $2.72 billion worth of bitcoin in Q2 of this year.
Square’s total Q2 net revenue was $4.68 billion, up 143% year over year, for a gross profit of $1.14 billion, up 91% since 2020.
“As we have offered individuals the ability to instantly send bitcoin free, unlock unique Boosts, direct deposit their paychecks, and more, customers have continued to find increased utility on the platform,” the letter read.
But while Bitcoin has played a significant role in the company’s revenue in 2021, Square sought to portray its support for the Bitcoin network as necessary for fostering a more useful financial ecosystem around the cryptocurrency.
The company generated a gross profit of $55 million during the second quarter on Cash App fees related to the purchase and sale of bitcoin, which accounted for just 2% of bitcoin revenue. Excluding bitcoin, Cash app’s revenue was $606 million during the same period.
The shareholder letter attributed not only the success of the company but that of customer’s who invested through the platform to an increased demand for, and an ease of access and exposure to bitcoin:
“Our ecosystem continues to be a differentiator as we find that customers who are trading stocks or holding them in their portfolio have engaged more with other products like Cash Card or bitcoin and have generated greater gross profit per customer.”
Square has continued to roll out bitcoin purchasing features such as custom orders, which allow users to set specific prices at which to buy or sell bitcoin. Other recent improvements include the ability to choose one of three sats-per-byte fees on bitcoin withdrawals.