Square Inc (NASDAQ: SQ) Cash App generates 11 times more revenue than Bitcoin (BTC) in the first quarter of 2021 compared to the same period last year.
What happened: Cash App’s BTC revenue was $ 3.5 billion, while gross profit was $ 75 million, both of which grew 11 times year-over-year in the first quarter of 2021.
In the first quarter of 2020, BTC’s revenue was $ 306 million, while gross profit was $ 7 million. In terms of percentage profit, BTC’s revenue and profit jumped to 1.047% and 971.4%, respectively.
In the first quarter of this year, BTC jumped 1
“Bitcoin revenue and gross profit benefited from the annual increase in the price of bitcoins, bitcoin assets and the growth of customer demand,” the letter to shareholders said.
“We recognize that bitcoin revenue may vary as a result of changes in customer demand or the market price of bitcoin.”
Square stocks rose 2.16% to $ 228.80 in overtime trading on Thursday after closing 3.41% lower at $ 223.96 in the regular session.
Why it is important: The company’s main application, the Dorsey Cash App, generated $ 4.04 billion in revenue and $ 495 million in gross profit, an increase of 666% and 171%, respectively, over the previous year.
Cash App revenue excluding BTC totaled $ 529 million in the quarter, an increase of 139% year-over-year.
Square’s earnings per share rose 950% year-over-year to 17 cents, beating the 16-cent forecast.
Total net income for the quarter increased 266.18 on an annual basis to $ 5.06 billion, exceeding the forecast of $ 3.33 billion.
In February, Square bought a $ 170 million BTC. The company bought another $ 50 million worth in October last year.
See also: Bitcoin is irresistible to institutional buyers even at $ 54,000: What you need to know
Square recorded an impairment charge of $ 19.9 million in the three months ended March 31 due to the observed market price of BTC, which fell below the book value during the period.
The company said that at the end of the quarter, the value of BTC’s investment in Square was $ 472 million, which is $ 271.9 million above the book value of $ 200.1 million.
Read Next: Jack Dorsey Square to fund the developers of the popular bitcoin tool
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