According to a report by Square, in the third quarter of 2020, $1.63 billion worth of bitcoins were sold through the Cash App, and this is almost twice as much as in the second quarter.
The sale of bitcoins in the third quarter of 2020 brought Square $32 million in profit. This is only 4% of the company’s total profit for the reporting period, but the growth rate for the year was an impressive 1,500%.
Since the beginning of 2018, when the Cash App became available to buy and sell bitcoins, the total trading volume of the first cryptocurrency has amounted to $3.4 billion. Trading volumes for the third quarter of 2020 account for almost half of the total trading volume.
“Trading volume and profit increased markedly due to an increase in the average number of transactions and purchase volumes,” the company said in its report.
Recall that in the first decade of October, Square bought 4,709 BTC in the amount of $50 million. Then the first cryptocurrency was worth about $10,500, but now bitcoin is trading at $15,500. Investments in bitcoin accounted for about 1% of the company’s total assets.
“In October 2020, we invested $50 million in bitcoin, as we believe that cryptocurrencies will help expand economic opportunities. And this is in line with the company’s goals. We expect to keep these investments for a long time,” the company’s representatives note.
Interestingly, according to the BitInfoCharts portal, the average amount of a BTC transaction in dollars has increased since July of this year from $25,000 to $151,000 as of October 20.