Cash App Home RunThe Cash App continues to knock it out of the park, with gross profit climbing 115% year-over-year. It was impossible not to notice Bitcoin’s influence. Cash App’s Q1 gross profit increased after experiencing a record number of new customers in March, thanks largely to demand for CEO Jack Dorsey’s favorite cryptocurrency, Bitcoin. In fact, more than 50% of Cash App’s quarterly revenue originated from Bitcoin transactions, results Dorsey characterized as “incredible” on the earnings call, adding:
“Cash App has been something very special for us.”Bitcoin generated $306 million in revenue on Cash App, its biggest quarterly contribution in history, as pointed out by Messari’s Ryan Watkins on Twitter. Without Bitcoin the app had revenues of $222 million. The results were thanks to “an increase in transacting active Bitcoin customers and growth in customer demand as a result of the decrease in the price of Bitcoin.” In last year’s Q3, Bitcoin revenue was $65.5 million.
Bitcoin ProfitIn Q1 2020, Bitcoin-fueled revenue produced an eye-popping $7 million gross profit amid what Square CFO Amrita Ahuja attributed to “increased adoption and…strong volume growth in the quarter.” Bitcoin is days away from its highly anticipated halving event in which for the third time so far the supply is slashed in half. Also, as Square CEO Jack Dorsey indicated on the call, investors flocked to Cash App to buy the dip when the BTC price fell as low as $4,100 in mid-March. The Bitcoin price has since more than doubled to $9,324 at last check. April was a record month for Cash App as it relates to Bitcoin and stock brokerage volumes as well as stored funds. Like many companies during this earnings season, Square offered no guidance for the second quarter given the uncertainty plaguing corporate America at the moment. But if Q1 is any indication, Bitcoin could very well be the belle of the ball next quarter too.