Mobile payment solutions provider Square Inc (NYSE:SQ). has published its quarterly earnings report, which includes details of its Bitcoin profits.
The firm confirmed that it realized $1.8 billion in Bitcoin revenue during Q3 2021, an 11% increase on a year-to-date basis. This translates to a gross profit of $42 million, a 29% increase from last year’s figure.
Although the figures represent an annual increase, they also indicate a quarterly decline. Previous quarterly reports published by the firm revealed that it realized $2.7 billion in Bitcoin revenue in Q2 and $3.5 billion in Bitcoin revenue in Q1 of this year.
As the matter of fact, the Q3 revenue is closest to that of Q4 of 2020, when the company raked in $1.76 billion in revenue.
In Square’s opinion, the decline has been due to market conditions, “driven primarily by relative stability in the price of Bitcoin which affected, trading activity compared to prior quarters.”
Most investors seek to invest in Bitcoin when its value is relatively low, but that strategy does not work out so well in a stable market.
Nevertheless, it appears that Bitcoin is still the largest contributor to Square’s revenue. The company’s total revenue for Q3 was $3.84 billion, meaning that Bitcoin accounted for almost half (46%) of Square’s total revenue.
However, Bitcoin was not so influential in terms of profit. Square Inc. generated a total of $1.13 billion in gross profits, with Bitcoin contributing only 4% of that figure.