Jack Dorsey’s Square reports Q1 bitcoin revenue grew 1,000% to $3.5 billion – and is the 3rd-largest corporate holder of the cryptocurrency

Jack Dorsey’s Square reports Q1 bitcoin revenue grew 1,000% to $3.5 billion – and is the 3rd-largest corporate holder of the cryptocurrency

Square reported first-quarter earnings that beat analyst estimates on Thursday, powered by surging demand for bitcoin.

Quarterly revenue from bitcoin grew eleven times to $3.5 billion, from $306 million a year ago, the company said in a shareholder letter. But gross profit from these transactions were only $75 million, or about 2% of bitcoin revenue, making up Square's fee generation from sales.

Square profits from transaction fees that customers are charged with when they buy or sell cryptocurrencies on its platform, which is smaller in comparison to revenue generated.

Overall quarterly sales for the digital-payments firm came in at $5.06 billion, beating analyst forecasts for $3.37 billion. Net income for the quarter was $39 million, or 8 cents per share. Gross profit more than doubled by rising 79% year-on-year to $964 million.

The company announced a boosted bitcoin stake in February, having invested an additional $170 million. That accounted for about 5% of its total cash, cash equivalents, and marketable securities.

With that investment, Square bought an additional 3,318 bitcoin at an average price of $51,235.68. It had bought 4,709 bitcoin for $50 million in October 2020, currently worth about $263 million.

Square now holds 8,027 bitcoin, according to bitcointreasuries.org, worth about $448 million. That makes