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Square’s Cash App gross profits on Bitcoin hit 42M in Q3 and opens up for teen use

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In the third quarter of 2021, the revenue of the payment company Square from the sale of Bitcoin (BTC) via Cash App amounted to $1.82 billion with a gross profit of $42 million. Compared to last year, the figures increased by 115% and 29%, respectively.

However, compared to the second quarter, the results decreased. Then the revenue reached $2.72 billion, and the gross profit was $55 million. The company explained this by “the relative stability of the Bitcoin price, which affected trading activity compared to previous periods”. In addition, the total revenue of Square services in July-September amounted to $3.84 billion. Moreover, the volume of processed payments reached $45.4 billion. The firm made a profit of $1.13 billion, which is 43% more year on year.

In October 2020, Square announced the purchase of the first cryptocurrency in the amount of $50 million. Later, in the first quarter of 2021, it additionally invested $170 million in digital gold. As of September 30, the market value of the company’s investments in Bitcoin amounted to $352 million, the firm reported. According to Bitcoin Treasuries, Square owns 8027 BTC. At the exchange rate at the time of writing, the assets are estimated at approximately $492 million.

Cash App is now targeting the teen market

The head of Square and Twitter, Jack Dorsey, tweeted on Thursday that anyone 13 and older can now use the Cash App for peer-to-peer transactions; however, they cannot currently use it to deposit checks or buy Bitcoin.

This puts Cash App up against Apple Cash’s family option. Adding Bitcoin functionality for teenagers would distinguish it from competitors such as Apple Cash and Venmo, and could help increase profits.

Square’s stock price has dropped 3.87% to $237.88 in after-hours trading.

Building Bitcoin mining system

Recall that previously in October CEO of the company considered that Square is building a Bitcoin mining system. According to him, mining should become more decentralized in order to increase the stability of the first cryptocurrency network.

He also called for efficient use of energy and noted that the limited supply of silicon is concentrated in several companies.

Therefore, Dorsey noted the lack of attention to vertical integration. He believes that mining should become simple and accessible to everyone. For this reason, the founder of Square thought about removing barriers for miners.

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