Square, led by Jack Dorsey, generated a gross profit of more than 90% more than last year. Additionally, $546 million coming from Cash App’s Bitcoin services.
Square’s Profit Increase
Square, led by Jack Dorsey, has announced a 200 % year-over-year rise in Bitcoin revenue for the second quarter (YoY).
The company’s second-quarter shareholder letter, sent out on August 1, revealed the outstanding profits statistics. According to the study, Square’s total gross profit increased 91% year over year to $1.14 billion.
Bitcoin’s Gross Profit is down
Moreover, bitcoin services brought in $2.72 billion in revenue for the app, with a gross profit of $55 million, up 210% and 223% year over year, respectively. Overall, Cash App made $546 million in gross profit, up 94% year over year.
On the other hand, bitcoin sales and gross profit are down 22.3% from 3.5 billion in the first quarter of this year.
Square ascribed the lower performance to the larger crypto markets’ more than 50% collapse in May and June.
Impairment Loss on Bitcoin
Square also disclosed a $45 million impairment loss on the Bitcoin it owns. Tesla must declare an impairment loss when the asset’s price falls below its cost basis. This is due to Bitcoin (BTC) being an “intangible asset” under accounting regulations. Square is likewise exempt from reporting gains in the value of its intangible asset assets until the stake is sold.
Square Holds $320 million BTC
According to Bitcoin Treasuries, Square now has 8,027 BTC worth $320 million at the time of writing.
Square just purchased 3,318 BTC for $170 million, in addition to the 4,709 BTC it bought in October 2020.
Despite a $425 million impairment loss on its Bitcoin hoard, mobile software business MicroStrategy promised to acquire more BTC. Tesla also announced a $23 million impairment loss for the quarter.