October 20, 2021

Square’s bitcoin business is massive

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Square’s bet on crypto keeps paying off: The Cash App business, fueled by bitcoin trading, generated the bulk of the company’s revenue in the first quarter.

Meanwhile, the makeup of Square’s seller ecosystem — the payment acceptance business the company is best known for — is transforming, with less emphasis on small merchants. In the first quarter, companies with payment volume of less than $125,000 per year accounted for only 39% of the total Seller ecosystem’s $29.8 billion in activity, down from 48% in the same quarter one year earlier.

The Cash App ecosystem generated approximately 80% of Square’s $5.06 billion in revenue for the quarter, with bitcoin trading contributing $3.5 billion, or 70% of the total. This represented a substantial increase from the fourth…

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