First Record: Q1 2020
Earlier this year, when the first quarterly report was due for release for Square’s Cash App, they had announced that they’ve reached record sales for Bitcoin to the tune of $500 million with a gross profit of $17 million. According to that filing, the volumes were up 72% quarter-over-quarter and 367% year-over-year.
Second Record: Q2 2020
This quarter, a new record was set more than doubling the gross profit from $7 million to $17 million with Bitcoin sales representing a phenomenal $875 million which is a 600% increase year on year.
According to the filing: “Bitcoin revenue and gross profit benefited from an increase in bitcoin actives and growth in customer demand.”
2020 has seen a lot of new expressed interest in owning Bitcoin from legendary investors such as Paul Tudor Jones but also from retail. As the dollar weakens, inflation rises and Gold hits all-time highs many seem to be viewing Bitcoin as Gold 2.0. An easier to hold and exchange asset, perhaps even a safe haven.
Square’s Cash App has retail customers, not institutional, therefore this outstanding increase in Bitcoin sales represents a new wave of retail capital flocking to the cryptocurrency market, as simpler acquisition and/or exposure methods have emerged.