Square’s Cash app saw its gross profit increase 94% to $ 546 million in the second quarter, but saw a $ 45 million write-down on its bitcoin holdings

• Square’s Cash app doubled its gross profit to $ 546 million in the second quarter, a letter to shareholders revealed Sunday night.
• The digital payment company recorded a $ 45 million loss in value on its bitcoin investment, he said.
• Bitcoin revenue from transactions has fallen, due to the relative stability in the price of the cryptocurrency.
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Square saw Cash App’s gross profit nearly double in the second quarter, but also recorded a $ 45 million loss in bitcoin holdings, according to a financial update.

Mobile payments platform Cash App reported quarterly gross profit of $ 546 million in the three months to June 30, a 94% year-over-year increase, Square said in a letter to shareholders released on Sunday. evening.

The growth helped bring the overall quarterly profit of Square, whose CEO is Twitter co-founder Jack Dorsey, to $ 1.14 billion, an increase of 91% from the previous year.

In contrast, the digital payments company said it recorded an impairment loss of $ 45 million on its bitcoin investment, on the heels of a $ 20 million depreciation in the first quarter.

The price of bitcoin has fallen 13% in the three months to June 30 and 37% since its peak in mid-April. It stood at $ 39,776 on Monday at 1221 ET, according to Coinmarketcap. The drop is due to China’s recent crackdown on activities such as cryptocurrency purchases and crypto mining, while regulators’ pullback on the Binance crypto exchange has also unsettled buyers.

Square offers the ability to instantly send bitcoin and buys the cryptocurrency so that customers can access it easily. Its bitcoin revenue reflects the total amount of coin sales the company has made.

In the second quarter, bitcoin revenue was $ 2.72 billion, three times more than the same period a year earlier. Bitcoin’s gross profit was only 2% of revenue at $ 55 million over the period, the company said.

“Compared to the first quarter of 2021, bitcoin revenue and gross margin decreased quarter over quarter, mainly due to the relative stability of the bitcoin price, which affected trading activity relative to previous quarters, ”Square wrote in the shareholder. letter.