Bitcoin made nearly $2B revenue for Dorsey’s Square last quarter

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Square made $3.16 billion revenue in the fourth quarter of 2020 — and Bitcoin flowing through its Cash App generated more than half.

This rounded off a strong year for Jack Dorsey-led fintech firm, which supports peer-to-peer payments, investments, and trading.

  • More than three million users traded Bitcoin via Cash App in 2020 — about 10% of its overall userbase.
  • Bitcoin generated $1.76 billion revenue (+502%) and $41 million gross profit (+162%) in Q4.
  • 36 million active Cash App users in December 2020, one million bought Bitcoin for the first time in January.

In a letter to shareholders, Square in-part attributed its gains to rising demand for Bitcoin — as well as overall growth for Cash App.

Excluding Bitcoin revenues, Square generated $1.4 billion last quarter — up 23% year-on-year.

Alongside its earnings, Square disclosed it recently bought 3,318 BTC for $170 million (an average price of about $51,000 per BTC).

Square bought the Bitcoin dip

Square first entered Bitcoin last October when it paid $50 million for 4,709 BTC (about $10,600 per BTC).

Together that makes 8,027 BTC, for which Square paid $220 million. Bitcoin currently makes up about 5% of Square’s treasury.

At today’s prices, Square’s BTC stash worth over $400 million — which means the company is up over 80% on its investment.

For scale, Tesla’s $1.5 billion investment totalled 8% of its cash equivalents when it was announced earlier this month.

[Read more: Public stocks like Tesla and Square gain $5B on their Bitcoin]

But Michael Saylor’s MicroStrategy takes the cake, having just spent another billion on Bitcoin.

Bitcoin now makes up almost two-thirds of the company’s $7.8 billion market value, according to Bitcoin Treasuries.

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