Jack Dorsey’s payments company, Square, said in its third quarter earnings report that quarterly earnings from using bitcoin (BTC) in the Cash mobile payment app decreased 23%.
But bitcoin profits are growing year by year.
Square attributed the decline in Bitcoin’s quarterly profit and gross margin to “the relative stability of Bitcoin’s price, which has impacted trading activity compared to previous quarters.”
The Cash app allows users in the US and UK to buy bitcoins and transfer money on the BTC peer-to-peer network as well. According to AppBrain, it is currently the second most downloaded financial app on the Google Play Store in the US, after the highest ranking by Crypto.com.
In the third quarter of the second quarter, bitcoin showed much less volatility after the price fell from a record high of $ 63,000 to $ 31,000 in the second quarter, while the price of bitcoin fluctuated between $ 30,000 and $ 50,000 in the third quarter.
The income statement indicates that in the third quarter of 2021, bitcoin revenue reached $ 1.82 billion, while total bitcoin revenue was $ 42 million, up 11% and 29% over the same period. last year, respectively. In the report, part of this year-over-year growth is attributed to the rise in the price of bitcoin.
The money application is now following the youth market. Dorsey tweeted on Thursday that anyone 13 and older can now use the Cash app to perform peer-to-peer transactions; However, they cannot currently use it to deposit checks or buy bitcoins. This puts the Cash app in competition with the family variant Apple Cash. Adding the functionality of Bitcoin for Teens will set it apart from others, including Apple Cash and Venmo, and could help boost profits.
Despite weak Bitcoin revenues, the Cash app saw strong overall growth in Q3 2021 with revenues of $ 2.39 billion and gross profit of $ 512 million, representing 16% and 33% growth, respectively.
Related: Jack Dorsey Square Plans To Build An Open Source Bitcoin Mining System
Earlier this week, the Cash app made headlines with the backing of famed NFL quarterback Aaron Rogers, who said he partnered with the Cash app to receive a portion of his salary in bitcoin.
Square’s secondary stock price fell to $ 237.88, down 3.87%.