20 July 2026
Square’s Cash App Q2 Bitcoin Revenue Surges by 200 Percent
During the Q2 earnings calls of Square, the firm revealed that users of its Cash App bought $2.72 billion worth of Bitcoin (BTC).
Square, the digital payment firm, led by Jack Dorsey, the founder, and CEO of Twitter, published its Shareholder letter, in which he emphasized, “While Bitcoin revenue was $2.72 billion in the second quarter of 2021, up approximately 3x year over year, Bitcoin gross profit was only $55 million, or approximately 2% of Bitcoin revenue.” However, after selling three times more Bitcoin in Q2 2020, Square’s gross profit has increased by 2% of its BTC revenue, which is $55 million.
Seemingly, this profit is earned, from the spread of the total sale amount of BTC between the customers and the cost of BTC Square purchased to facilitate those sales. Moreover, when a user purchases Bitcoin via the Cash App square adds “a small margin to the market cost of Bitcoin, which tends to be volatile and outside our control.” Adding further, the firm stated, “Bitcoin revenue and gross profit benefited from year-over-year increases in the price of Bitcoin and Bitcoin activities and growth in customer demand.”
Meanwhile, when the price of many cryptocurrencies slashed by 50% in mid-May, Square’s Q2 Bitcoin performance was remarked offset. Comparatively, Square reported a Bitcoin gross profit of $75 million and a total BTC revenue of $3.51 billion in its first quarter of 2021. Besides, May’s dip has also affected Square’s Bitcoin investments. The company had bought $50 million and $170 million worth of BTC in late 2020 and early 2021, respectively. Square considers Bitcoin as “an indefinite-lived intangible asset,” accounting rules called the firm to mark down its BTC investment by $45 million in Q2.
Emphasizing further, Bitcoin is subject to impairment losses if the fair value of Bitcoin decreases below the carrying value during the assessed period. In the second quarter, we recognized a Bitcoin impairment loss of $45 million on our bitcoin investment.”
The fair value of Square’s Bitcoin investment was valued at $281 million “which is $127 million greater than the carrying value of the investment.” Until Square decides to sell its holdings, the amount won’t be translated to any realized profits or losses.
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.
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