The Cash App, a Bitcoin-powered mobile payment app from US financial company Square, reported that Bitcoin (BTC) exceeded all other revenue streams, accounting for about 80% of total revenue in the third quarter.

In Square’s third-quarter report, Bitcoin Cash App’s $ 1.63 billion revenue from Bitcoin saw a massive increase of over 1,100% over the same period in 2019.

Bitcoin revenue was by far the largest contributor to the $ 2 billion total in cash app revenue, with all other revenue streams totaling $ 453 million, or 22% of the total.

The Cash app acts as an intermediary for Bitcoin purchases, buys it on the user’s behalf and adds a small commission.

The report notes that part of the increase in Bitcoin sales is attributable to the app’s auto investing tool, launched in May this year, that allows users to repeat daily or weekly purchases of stocks or BTC.

Bitcoin revenue generated $ 32 million in total profit in the third quarter, up 15 times over the previous year, from $ 2.1 million in the same period.

Square’s total revenue in the third quarter exceeded $ 3 billion, up 140% from 2019, of which Bitcoin accounted for more than 50%. Bitcoin’s total revenue for the whole of 2019 was $ 338 million and gross profit was $ 5 million.

Within hours of the report’s release, Square’s share price rose 6% out of hours to $ 184, higher than the previous story’s $ 190 earlier this month. At the same time, Bitcoin rose by a similar amount and reached its highest level in two years at $ 15,880.

In the report, Square also cited its $ 50 million investment in Bitcoin (4,709 BTC) as a state owner, now valued at $ 74.8 million. He added that the acquisition of the company was based on the belief that “digital currencies are a tool of financial empowerment and are in line with the company’s goals”:

“We are looking to retain this investment for the long term.”
Despite Square’s massive investment, the company is the 7th largest Bitcoin trading company by assets.

Source: CoinTelegraph