Online payment solution Square says its popular payments platform Cash App sold $1.63 billion worth of Bitcoin in the third quarter of 2020.
In a Q3 report filed with the Securities and Exchange Commission (SEC), the company says crypto activity from retail traders is on the rise from every angle.
“Bitcoin (BTC) revenue and gross profit benefited from an increase in Bitcoin actives and volume per customer.”
The amount of BTC sold through the app equates to about 110,000 BTC at time of publishing, which is significantly more than the amount of Bitcoin mined in the same time frame. Capriole Investments founder Charles Edwards says the numbers show Bitcoin is heading for a supply shock.
“This is huge. Square is selling double the Bitcoin that is made. …and now PayPal is doing the same. PayPal is almost 3X Square. We already know Grayscale is consuming a similar magnitude. This is a Bitcoin supply crisis. Base case: expect huge price moves from Bitcoin.”
Square made $32 million in gross profits on its Bitcoin sales, up $15 million in the second quarter of the year.
Last month, Square revealed it used its corporate cash to acquire approximately $50 million worth of BTC, citing cryptocurrencies at large as a source of economic empowerment that aligns with the company’s goals.
Square says it plans to hold on to the BTC for the long term.
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