Jack Dorsey’s payments company Square revealed in its third quarter earnings report that the mobile payment app Cash App saw a 23% drop in quarterly profits generated by Bitcoin (BTC).
But Bitcoin’s profits and revenue are both up year over year.
Square attributes the decline in Bitcoin’s revenue and gross profit quarter over quarter to “Bitcoin’s relative price stability, which has affected trading activity compared to previous quarters.”
Cash App allows users in the US and UK to buy Bitcoin and transfer money and BTC peer-to-peer. According to AppBrain, it currently ranks second in financial app downloads on the US Google Play Store behind the highest ranked Crypto.com.
Bitcoin experienced much less volatility in Q3 than in Q2 after the price went from a previous high of nearly $ 63,000 to around $ 31,000 in Q2, while in Q3 the price of Bitcoin fluctuated d ‘about $ 30,000 to $ 50,000.
The earnings report states that in the third quarter of 2021, Bitcoin’s revenue reached $ 1.82 billion, while gross profit on Bitcoin reached $ 42 million, representing increases of 11. % and 29% year over year, respectively. The report attributes some of this year-over-year growth to the increase in the price of Bitcoin.
Cash App is now tackling the teen market. Thursday, Dorsey tweeted that anyone 13 years of age and over can now use the Cash application for its peer-to-peer transaction capability; however, they currently cannot use it to deposit checks or buy Bitcoin. This puts Cash App in competition with the family option of Apple Cash. Adding the Bitcoin feature for teens would set it apart from all the others, including Apple Cash and Venmo, and could help boost profits.
Cash App is now available for all ages 13 and up https://t.co/TeK8uPQ9Tt
– jack⚡️ (@jack) November 3, 2021
Despite Bitcoin’s revenue decline, Cash App posted solid overall growth in the third quarter of 2021 generating $ 2.39 billion in revenue and $ 512 million in gross margin, up 16% and 33%, respectively. .
Related: Jack Dorsey’s Square Plans To Build Open Source Bitcoin Mining System
Cash App made headlines earlier this week garnering support from popular NFL quarterback Aaron Rodgers, who said he was teaming up with Cash App to accept part of his salary in Bitcoin.
Square’s stock price fell to $ 237.88 after-hours, down 3.87%.