Cash App, the peer-to-peer payments service of Jack Dorsey’s financial firm Square, generated $2.72 billion in Bitcoin revenue in the second quarter.
While this represents a 143 percent year-over-year increase, the figure pales in comparison to the $3.5 billion that was reported in the previous quarter.
The Bitcoin service accounts for the lion’s share of Square’s total Q2 net revenue ($4.68 billion).
Square managed to secure significant growth in Bitcoin-related revenue in spite of a massive market correction. In Q2, an onslaught of bear-favoring news sent the top cryptocurrency careening by over 40 percent, and Bitcoin logged one of its worst quarters on record.
Square’s Bitcoin gross profit was only a meager $55 million in the second quarter, a 26 percent drop from the $75 million it reported in Q1.
A $45 million impairment loss
Due to the crypto market’s significant drawdown in Q2, Square had to report an impairment loss of $45 million on its Bitcoin investment.
E-car manufacturer Tesla, for comparison, took a lower-than-expected $23 million Bitcoin loss that was reported in late July.
Following MicroStrategy’s lead, Square became one of the first publicly-traded companies to add Bitcoin to its balance sheet.
The company invested $50 million last October and later revealed another $170 million purchase in February.