Square’s (SQ) revenue from its bitcoin (BTC) business increased 11-fold compared with this time last year.
"Cash App generated $3.51 billion of bitcoin revenue and $75 million of bitcoin gross profit during the first quarter of 2021, each up approximately 11x year over year," according to a shareholder letter published Thursday.
That was double Square’s bitcoin revenue of $1.76 billion in the fourth quarter of 2020. Bitcoin revenue for the first quarter of 2020 was $306 million.
Total revenue in the first quarter of this year was $5.06 billion, meaning bitcoin revenue accounted for 70% of Square's total consolidated revenue in the quarter.
In addition to Cash App’s involvement as a mainstream gateway to bitcoin, Square holds a portion of its treasury in the cryptocurrency.
"In the fourth quarter of 2020 and first quarter of 2021, we invested $50 million and $170 million, respectively, in bitcoin," Square wrote, adding that it expects to "hold this investment for the long term."
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Due to fluctuations in market prices during the first quarter, the company reported a $20 million impairment loss on its bitcoin holdings. Nevertheless, by quarter's end, the value had made a strong gain, as Square reported a $472 million fair value of its bitcoin on March 31, $272 million greater than its carrying cost.