Cash App Sees Big Jump in Revenue as Bitcoin Price Drop
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May 6, 2020
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Backed by Square, Inc. Cash App generated $528 million of revenue in the first quarter of 2020 (+8% year over year).

Bitcoin Remains Above $9,000

According to a letter to shareholders, Cash App revenue included $306 million in bitcoin (EXANTE: Bitcoin) revenue during the quarter, which benefited from an increase in transacting active bitcoin users and growth in customer demand amid the massive drop of bitcoin price in March.

"When customers buy bitcoin through CashApp, we only apply a small margin to the market cost of bitcoin, which tends to be volatile and outside our control. Therefore, we believe deducting bitcoin revenue better reflects the economic benefits as well as our performance from these transactions," the letter said.

Bitcoin revenue, according to Square, generated gross profit of $7 million in the first quarter of 2020.

Excluding bitcoin, Cash App revenue was $222 million, up 98% year over year.

Square to Open its Own Bank in 2021

Previously iHodl reported that almost half of the Square revenue in the Q4 of 2019 was thanks to the bitcoin sales.

Square customers acquired over $178 million worth of bitcoins in the fourth quarter, and $516 million for the entire 2019.

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