Jack Dorsey’s Square noted that its cryptocurrency-friendly mobile payment app Cash App had registered its best quarter during Q2 2020. Nearly half of the $1,92 billion total revenue came from the company’s Bitcoin trading service. As a result, Square shares have pumped after hours following the record numbers.
Square published the Q2 results for its Cash App earlier than expected due to “external access of the company’s quarterly financials.” While marking increases on almost all fronts, the revenue generated of Bitcoin trading has surpassed all previous records, as the company informed:
“Cash App generated $875 million of Bitcoin revenue and $17 million of Bitcoin gross profit during the second quarter of 2020, up 600% and 711% year over year, respectively. Bitcoin revenue and gross profit benefited from an increase in Bitcoin activities and growth in customer demand.”
The company outlined that it reached over 30 million monthly transacting actives in June from all of its features. However, when new users register, the first products they turn to are the Cash Card, direct deposit, and Bitcoin investing. Square also noted that these rather impressive results could be linked to some extent to the current economic situation prompted by the COVID-19 and the excessive stimulus packages:
“Compared to June, we saw month-over-month increases in volume per transacting active Cash App customer across peer-to-peer payments, Cash Card, and Bitcoin investing. We recognize this increase may be partially driven by government stimulus and unemployment benefits, which may not sustain at the same levels during the remainder of the third quarter.”
The total revenue generated by Cash App has also surged significantly by 64% year over year to $1.92 billion. The gross profit grew 28% year over year to $597 million. These results have materialized after the company moved “quickly to address the evolving needs of our customers as repercussions of COVID-19 persisted for both businesses and individuals.”
Naturally, marking double-digit revenue and gross profit increases have impacted the company stocks. Although Square shares (SQ) pumped by only 1.5% during yesterday’s trading session on Wall Street, the consequences were felt after hours – following the release of the Q2 2020 numbers.
SQ jumped by 8.53% after trading hours to $148.50. On a yearly scale, this means that Square stocks have more than doubled as they entered 2020 at $64.
