Square, the US payments company run by Twitter co-founder Jack Dorsey, has seen a significant increase in quarterly Bitcoin sales, industry website Coindesk has reported.
In its second quarter earnings report which was published yesterday, the company revealed that Bitcoin trading had accounted for nearly half of the $260 million in revenue, generated by its Cash mobile app during the three months to June 31. The revenue from the Bitcoin business came in at $125 million, shattering its previous record of $65 million, which was set during the first three months of this year. The business also generated $2 million of gross profit, which more than doubled the first quarter result.
While not very profitable yet, Square’s nascent business has been contributing to the success of the Cash app in other ways.
“They don’t really make a lot of money on it, but it is driving engagement,” Chris Brendler, senior research director at market intelligence firm CB Insights told CoinDesk.
Square’s Dorsey, who is a big supporter of Bitcoin, seemed pleased with the results.
“We love you, bitcoin,” he said on an investor call yesterday. Dorsey has said on several occasions that he believes that Bitcoin will one day become the native currency of the Internet.
In its report, the Square said that the revenue result had been boosted by “increased volume as a result of the increase in the price of” the cryptocurrency. The Bitcoin price surged by 163% in the second quarter and closed the period at $10.817.16, according to data from digital currency tracker Coinmarketcap. While the coin’s advance cooled down in July, BTC has seen some resurgence in the early day of August.
In today’s trading, the Bitcoin price stood at $10,547.35, as of 15:41 BST. The digital coin has gained 5.3% in the past 24 hours, Coinmarketcap data shows.
Featured image: Who is Danny / Shutterstock.com