On an overall scale, the third quarter’s total company revenue amounted to $3.03 billion, up from $1.27 billion in the third quarter of the previous year.

On Thursday at the market close, Square Inc (NYSE: SQ) published in its Q3 investor letter that during the third quarter of 2020, it has realized a Bitcoin revenue of $1.63 billion. This means that the revenue had surged approximately 11x from last year’s third quarter. The App has also seen an increase in Bitcoin transactions, which made it realize $32 million in third-quarter gross profit earnings – that amount is 15 times more than the figure at the same period last year.On an overall scale, the third quarter’s total company revenue amounted to $3.03 billion, up from $1.27 billion in the previous third quarter, representing a 140% increase. Square’s net income also increased by 27% from $29 realized at the same time last year to $37 million earned in the third quarter.600% Increase in Cash App’s Quarterly Bitcoin RevenueIn the second quarter of 2020, Jack Dorsey‘s financial services company got a revenue of $875 million from its Bitcoin (BTC) transactions via its Cash App. Compared to the revenue attained during the second quarter of last year, a 600% surge has been realized. A gross profit of $17 million was generated in the same period representing a 711% year-over-year increase. Total expenses generated during the sale of its bitcoin offering amounted to $858 million.Customer demand growth due to the Bitcoin’s block reward halving hype, as well as extreme market volatility, contributed heavily to wonderful Bitcoin revenue and gross profit results realized in the third quarter.In the investors’ letter, Square wrote:

“In the second quarter of 2020, we saw year-over-year and quarter-over-quarter increases in volume per active customer across our Cash App ecosystem, including peer-to-peer payments, Instant Deposit, Cash Card, bitcoin investing, and stock brokerage.”

$50 Million Investment in BitcoinIn terms of building bitcoin services, Square has led the way amongst public traded companies after becoming the first to pilot Bitcoin purchases via its cash up back in 2017. Last month, PayPal Holdings Inc (NASDAQ: PYPL) join the trail after it announced that it would support Bitcoin, Ether, Litecoin and Bitcoin Cash for purchases at its 26 million merchants globally.In October, Square announced in its shareholder letter a $50 million Bitcoin purchase. During the earnings call, Dorsey said the following:

“We announced two strategic investments. The second was a $50 million investment in bitcoin, which we believe will be the native currency of the internet, and help people thrive around the world and the economy.”

At that time, Bitcoin’s price had jumped 2.5% to retail at $11,000, but now at the time of writing, it is way above $15,500.Cash App by Square Continuously Bringing More Profits in Q3Square has often realized quite a small bitcoin sales margin over the past periods. Compared to Square’s overall business that usually generates much higher margins, the company’s Cash App generates a very thin margin of under 2% in profit from its Bitcoin sales. For instance, in the second quarter, the firm overall managed to make $597 million (a 31% profit) from a revenue of $1.92 billion.However, as per the Q2 shareholder letter, the Cash App gave the company a revenue of $1.2 billion and a gross profit of $281 million. In the third quarter, the App has been able to bring in profits worth $385 million. Evidence now suggests that Square’s Cash App, a crucial Bitcoin entry point for a couple of investors, is increasingly delivering stronger profits.

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