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Profits rise at Square thanks to Bitcoin sales

Square
(Image credit: Square)

Square, which has been enjoying increasing success with its Cash App, has revealed that it has sold $1.63 billion in bitcoin with a $32 million gross profit from the digital currency by the third quarter of 2020. Cryptocurrency is proving popular with the company and it recently purchased $50 million in bitcoin, underlining its commitment to digital money.

In its latest earnings statement the company announced that overall revenue has more than doubled to $3.03 billion for the same period, with strong demand for products that allow consumers to spend their cash online, rather than at physical outlets.

The financial services company, known for its quick and easy card reader products, has been enjoying a boost in online payments turnover, alongside increasing use of the consumer-focused Cash App. The mobile digital wallet software managed to turn a gross profit of $385 million, with Square reporting that this represents a 212% increase since last year.

Square, which is headed up by Twitter boss Jack Dorsey, processed $31.7 billion in payments for the third quarter of this year. Releasing the figures yesterday, the company said the figures were up by 12% on a year ago.

Square reader

Square’s big appeal for small businesses has been its innovative credit card reader package, that lets owners use their smartphones as payment terminals

Despite the pandemic being rife many smaller business proprietors in physical locations are also able to make use of the terminals for contactless transactions, as the need for social distancing continues to be a big part of the consumer sales equation.

In similarly upbeat news for Square, and with the coronavirus pandemic having a detrimental effect on business as a whole, the Square Capital arm of the financial services business has still managed to help facilitate around 35,000 in loans for the same third quarter period. However, the amount said to be worth around $155 million, is reported to be down a substantial 72% compared to 2019.