Despite Square’s BTC impairment loss, Cash App’s quarterly Bitcoin revenue has tripled

Jack Dorsey’s Square reported that Bitcoin revenue in the second quarter increased by 200% year-on-year.

The company released impressive second-quarter shareholder earnings data letter August 1. In the report, Square revealed that its total gross profit increased by 91% year-on-year to $1.14 billion.

The Bitcoin service brought in revenue of US$2.72 billion for the application, with a gross profit of US$55 million, an increase of 210% and 223% year-on-year, respectively. Cash App’s overall gross profit was US$546 million, a year-on-year increase of 94%.

“Bitcoin revenue and gross profit benefited from the year-on-year increase in the price of Bitcoin and Bitcoin activities and the increase in customer demand.”

However, compared with the first quarter of this year, Bitcoin revenue and gross profit have declined, down 22.3% from 3.5 billion.

Square attributed the weak performance to the broader crypto market that suffered more than 50% retracements between May and June.

Square also reported that its Bitcoin holdings had suffered an impairment loss of $45 million. Since Tesla holds its Bitcoin (Bitcoin) As an “intangible asset”, accounting rules require companies to report Impairment loss When the price of an asset is lower than its cost basis. Before realizing a position through a sale, Square does not need to report an increase in the value of its intangible assets.

according to Bitcoin Treasury BondAt the time of writing, Square currently holds 8,027 BTC, valued at approximately US$320 million.

related: Square overweights Bitcoin and invests another $170 million

Square recently purchased 3,318 BTC for USD 170 million in February, increasing its Initial purchase 4,709 BTC October 2020.

On July 30, Cointelegraph reported that mobile software companies MicroStrategy promises to buy more BTC Although its Bitcoin asset impairment loss in the second quarter was 425 million U.S. dollars.Tesla also reported Impairment loss of USD 23 million This quarter.