Square Inc. has announced its earnings results for the second quarter of 2021 in its second-quarter shareholder letter. The company intends to file these results with the Securities and Exchange Commission on the morning of Monday, August 2.
The firm’s Cash App service’s bitcoin yearly revenue rose 200% to $2.72 billion from $875 million. Its bitcoin gross profit rose to $55 million from $17 million. The profit benefited from year-to-year increases in bitcoin price and increasing customer demand.
During Q2, Square faced $45 million of impairment loss on its bitcoin holdings. But the fair value of its total investment in bitcoin since Q4 last year stood at $281 million as of June 30. It is “$127 million greater than the carry values of the investment”.
Cash App’s bitcoin revenue represents the total sale amount of bitcoin with the cost of total buy amount of bitcoin. The company purchased its bitcoin for $50 million in Q4 and $170 million in Q1.
Square has canceled its conference call and earnings webcast scheduled for Thursday, August 5. It will instead discuss these financial results at 5:00 a.m. Pacific time/8:00 a.m. Eastern time on August 2.
Recently, Tesla & Microstrategy also released its Q2 earning reports and they both faced impairment loss on their bitcoin holdings. Microstrategy pledged to buy more BTC despite its impairment loss of $425 million on its bitcoin holdings.
About Square Inc.
Square, Inc. (NYSE: SQ) builds tools to empower businesses and individuals to participate in the economy. Sellers use Square to reach buyers online and in-person, manage their business, and access financing. Individuals use Cash App to spend, send, store, and invest money. Square, Inc. has offices in the United States, Canada, Japan, Australia, Ireland, Spain, Norway, and the UK.
