Bitcoin Profit Dip in Q3 Earnings
Jack Dorsey’s payments enterprise, Square, revealed some eyebrow-raising figures in its Q3 earnings report, notably a 23% drop in Cash App’s quarterly profits from Bitcoin (BTC). It’s like ordering a giant pizza and realizing you only got a single slice left!
Year-on-Year Gains Tell a Different Story
Despite the quarterly setback, let’s not turn into Eeyore just yet! Year-on-year metrics are looking rosy; both Bitcoin profits and overall revenue have seen a healthy rise compared to last year. In fact, Cash App reported Bitcoin revenue for the third quarter at a staggering $1.82 billion and gross profits hitting $42 million.
- Quarterly Bitcoin Revenue: $1.82 billion
- Quarterly Bitcoin Gross Profits: $42 million
- Year-on-Year Revenue Increase: 11%
- Year-on-Year Gross Profit Increase: 29%
Bitcoin Stability Affects Trading
Square attributes the drop in Q3 Bitcoin revenue and gross profits to the recent “relative stability of Bitcoin prices,” which has made traders feel about as excited as watching paint dry. Unlike Q2, where Bitcoin’s rollercoaster antics saw it plummet from nearly $63,000 to about $31,000, Q3 kept things chill with prices ranging from $30,000 to $50,000.
Cash App: Aiming for Younger Users
To counteract the quarterly lull, Cash App is setting its sights on a younger audience. A recent announcement allowed users as young as 13 to join the Cash App squad, albeit without Bitcoin trading or check deposits. This strategic move puts it toe-to-toe with Apple Cash, which already has a family option. Talk about a competitive showdown!
The Bitcoin Teen Dream
If Cash App decides to let teenagers buy Bitcoin, it could make waves in the financial app world and snatch more profits away from the competition. Who wouldn’t want to tell their friends they bought Bitcoin before finishing middle school?
Overall Growth Amid Bitcoin Revenue Slide
Despite the Bitcoin revenue hiccup, Cash App is flexing its muscle with impressive overall growth. The app generated a whopping $2.39 billion in revenue with gross profits reaching $512 million—an increase of 16% and 33% respectively. Sometimes, you just have to assert dominance, even when the Bitcoin tides may not be in your favor.
Pop Culture Endorsements Make Headlines
In a plot twist worthy of a blockbuster, Cash App gained some celebrity endorsements, including NFL quarterback Aaron Rodgers, who decided to receive part of his salary in Bitcoin. Talk about showing off your crypto cred!
Square’s Stock Takes a Hit
In the ever-swirling world of finance, Square’s stock did a little dance of its own after hours, dropping to $237.88, down 3.87%. Oh, the financial market drama never stops!
In summary, while Cash App faced a quarterly profitability dip related to Bitcoin, it still managed to demonstrate strong overall performance and interesting strategic moves to attract a younger demographic. Let’s hope the winds of Bitcoin fortune change direction soon!
