Jack Dorsey’s payment company Square Inc. announced in its third quarter earnings report that the Cash App mobile payment app saw its quarterly earnings generated by Bitcoin decline 23%.
But Bitcoin’s profits and revenues are both higher than last year.
Square attributes the quarter-on-quarter decline in Bitcoin sales and gross profit to the “relative stability of the Bitcoin price, which had an impact on trading activity compared to the previous quarters.”
The Cash app enables users in the United States and the United Kingdom to buy Bitcoin and transfer money and BTC peer-to-peer. According to AppBrain, it currently ranks second in the installation of financial apps in the US Google Play Store behind the top ranking crypto.com.
Bitcoin experienced much less volatility in the third quarter than it did in the second quarter, after the price fell from a previous ATH from nearly $ 63,000 to about $ 31,000 in the second quarter, while Bitcoin price ranged from about $ 30,000 to $ 50,000 in the third quarter .
The earnings report said that Bitcoin sales reached $ 1.82 billion in the third quarter of 2021, while Bitcoin’s gross profit reached $ 42 million, up 11% and 29% year over year. The report attributes part of this annual growth to the rise in the price of Bitcoin.
Cash App is now tracking the teen market. On Nov. 4, Jack Dorsey tweeted that anyone 13 and older can use the Cash app for their peer-to-peer transaction ability, but currently cannot use it to deposit checks or purchase Bitcoin. This means that Cash App competes with Apple Cash’s family option. Adding bitcoin functionality for teenagers would make it stand out from everyone else including Apple Cash and Venmo and could help increase profits.
Cash app is now available for everyone aged 13 and over https://t.co/TeK8uPQ9Tt
– jack⚡️ (@jack) November 3, 2021
Despite weaker Bitcoin sales, Cash App showed solid overall growth in the third quarter of 2021, posting sales of $ 2.39 billion and gross profit of $ 512 million, up 16% and 33% respectively.
Related: Jack Dorsey’s Square plans to build an open source bitcoin mining system
Cash App made headlines earlier this week by gaining the endorsement of popular NFL quarterback Aaron Rodgers, who said he was working with Cash App to accept part of his salary in Bitcoin.
Square Inc.’s share price fell to $ 237.88 in after-hours trading, down 3.87%.
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