Square increased revenue significantly year over year despite the massive market correction.
Overall, the company stated $2.72 billion in bitcoin revenue in spite of the broader market correction. In the second quarter, Jack Dorsey’s financial firm Square earned $2.72 billion in Bitcoin revenue.
While this means a 143 percent year-over-year growth, but in the previous quarter revenue was $3.5 billion, so in comparison to that this quarter’s figures are low. Square’s Q2 net revenue ($4.68 billion) was mostly generated by the Bitcoin service accounts.
Despite the drop in the overall market, the surge in Bitcoin-related revenue was significant for Square. Q2 was a tidal wave of bear-friendly news that saw cryptocurrencies drop by over 40%. Meanwhile, Bitcoin posted one of its worst quarters in history.
The average Bitcoin gross profit in the second quarter was only $55 million, a 26% decrease from the $75 million reported in the first quarter. Following a sharp decline in the price of cryptocurrencies in the second quarter, Square had to disclose a loss of $45 million on its Bitcoin holdings.
E-car company Tesla stated in late July that it has taken a lower-than-expected $23 million loss due to the recent rise in Bitcoin. Square followed MicroStrategy’s lead in bringing Bitcoin onto its Balance sheet, which was one of the first public firms to do so. The firm put $50 million into the project last October, and another $170 million investment was revealed in February.
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