Square reported in its third-quarter profits statement on Thursday that its peer-to-peer transactions system, Cash App, produced $1.82 billion in bitcoin revenues and $42 million in gross margin in the quarter, increasing 115 percent and 29 percent annualized, respectively.
However, bitcoin income and net income fell in the third quarter compared to the second, according to Square, citing “relative stability in the price of bitcoin, which reduced speculative trading comparable to recent quarters.”
During its third-quarter teleconference, the business stated that a policy document on TBD, its new league focusing on establishing an open development platform to construct a decentralized bitcoin exchange, will be released on November 19.
Square also stated that bitcoin revenues and gross profit may vary in subsequent quarters due to changing customer demands and the current value of bitcoin. That may be especially true “when we lap strong year-over-year growth rates in the fourth quarter of 2020,” according to the report.
In the third quarter, Square’s total net revenue was $3.84 billion, up 27 percent year on year, while gross margin was $1.13 billion, up 43 percent year on year. Square shares fell nearly 4.9 percent in after-hours trade following the publication of its third-quarter figures.
Square also stated during the call that the firm has no plans to give users cryptocurrencies other than bitcoin. The company stated that it is concentrating on developing its physical wallet as well as continuing efforts to allow people and corporations to mine cryptocurrency. CEO Jack Dorsey first hinted at the latter intention in a tweet a few weeks back.