Jack Dorsey’s payments company, Square, revealed in its Q3 earnings report that mobile payments app Cash App saw a 23% drop in quarterly profits generated by Bitcoin (BTC).
But Bitcoin profits and revenue are both up year-on-year.
Square attributes the drop-off in quarter-on-quarter Bitcoin revenue and gross profit to the “relative stability of the price of Bitcoin, which affected trading activity compared to prior quarters.”
Cash App allows users in the United States and the United Kingdom to buy Bitcoin and transfer money and BTC peer-to-peer. According to AppBrain, it currently ranks second in finance app downloads on the U.S. Google Play Store behind top-ranked Crypto.com.
Bitcoin saw much less volatility in Q3 than Q2 after the price dropped from a previous all-time high of nearly $63,000 to about $31,000 in Q2, while in Q3, Bitcoin’s price ranged from about $30,000 to $50,000.
The earnings report states that during the third quarter of 2021, Bitcoin revenue reached $1.82 billion, while gross profits on Bitcoin hit $42 million, representing 11% and 29% year-over-year increases, respectively. The report attributes some of this year-on-year growth to the increase in the price of Bitcoin.
Cash App is now going after the teen market. On Thursday, Dorsey tweeted that everyone 13 and older can now use the Cash App for its peer-to-peer transaction capability; however, they cannot currently use it to deposit checks or buy Bitcoin. This puts Cash App in competition with Apple Cash’s family option. Adding Bitcoin functionality for teenagers would set it apart from all others, including Apple Cash and Venmo, and could help increase profits.
Cash App is now available for everyone 13 and older https://t.co/TeK8uPQ9Tt— jack⚡️ (@jack) November 3, 2021
Despite the weaker Bitcoin revenue, Cash App demonstrated solid overall growth in the third quarter of 2021 by generating $2.39 billion in revenue and $512 million in gross profit, 16% and 33% increases, respectively.
Related: Jack Dorsey’s Square plans to build an open-source Bitcoin mining system
Cash App made headlines earlier this week by gaining endorsements from popular NFL quarterback Aaron Rodgers, who stated he was partnering with Cash App to accept a portion of his salary in Bitcoin.
Square’s stock price has fallen to $237.88 in after hours trading, down 3.87%.