Cash App, the mobile payment service owned by former Twitter Cofounder Jack Dorsey, has reported a record-breaking quarter for its Bitcoin sales. According to its latest earnings report, Cash App sold $2.4 billion worth of Bitcoin to its customers in the third quarter of 2023, up 11% from the previous quarter and a whopping 458% from the same period last year.
This impressive growth reflects the increasing popularity and adoption of Bitcoin as a store of value and a medium of exchange. Cash App allows its users to buy, sell, send, receive, and store Bitcoin easily and securely, with features such as auto-investing, instant transfers, and Bitcoin Boosts. Cash App also generates revenue from the spread or margin between the price at which it buys and sells Bitcoin from its liquidity providers.
Cash App’s Bitcoin sales accounted for more than half of its total revenue in Q3, which reached $4.6 billion, up 6% quarter-over-quarter and 133% year-over-year. Cash App’s gross profit was $546 million, up 7% quarter-over-quarter and 212% year-over-year. Cash App’s Bitcoin gross profit was $42 million, up 29% quarter-over-quarter and 90% year-over-year.
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Cash App’s strong performance in Q3 demonstrates its ability to leverage its large and engaged user base to drive growth and innovation in the Bitcoin ecosystem. Cash App has over 40 million monthly active customers, of which more than 10 million use its Bitcoin services. Cash App also supports the development of Bitcoin infrastructure and open-source projects through its Crypto Open Patent Alliance (COPA) and Square Crypto grants.
Cash App is one of the leading platforms for Bitcoin adoption and education in the US and beyond. By offering a simple and user-friendly way to access the benefits of Bitcoin, Cash App is helping to bring more people into the world of decentralized finance and digital sovereignty.
Argentinian e-commerce giant MercadoLibre to increase its Bitcoin?holdings
MercadoLibre, the largest e-commerce platform in Latin America, has announced that it will increase its Bitcoin holdings as part of its treasury strategy. The company, which operates in 18 countries including Argentina, Brazil, Mexico, and Colombia, has been a pioneer in embracing cryptocurrencies and blockchain technology in the region.
In its Q3 2023 earnings report, MercadoLibre revealed that it had purchased $31.6 million worth of Bitcoin in the third quarter, bringing its total Bitcoin holdings to $81.6 million as of September 30, 2023. The company also reported a 19.5% year-over-year increase in net revenues, reaching $1.4 billion in the quarter.
MercadoLibre’s CEO and co-founder, Marcos Galperin, said that the decision to increase its Bitcoin exposure was based on the belief that Bitcoin is a better store of value than fiat currencies, especially in Latin America where inflation and currency devaluation are rampant. He also said that Bitcoin offers a hedge against geopolitical risks and a way to diversify the company’s portfolio.
Galperin added that MercadoLibre is not only investing in Bitcoin, but also supporting its adoption among its users and merchants. The company launched a crypto section on its marketplace in May 2021, allowing users to buy and sell Bitcoin and other cryptocurrencies using its payment platform, Mercado Pago. The company also integrated Bitcoin into its loyalty program, Mercado Puntos, allowing users to earn and redeem Bitcoin rewards.
MercadoLibre is not the only Latin American company that is bullish on Bitcoin. In September 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender, allowing citizens to use it for everyday transactions and pay taxes. Other countries in the region, such as Panama, Uruguay, Paraguay, and Colombia, are also considering or implementing pro-crypto legislation and initiatives.
The growing interest and adoption of Bitcoin in Latin America reflects the potential of this technology to empower people and businesses in emerging markets, where access to financial services and stability are often limited or nonexistent. By increasing its Bitcoin holdings, MercadoLibre is not only enhancing its own financial performance and resilience, but also paving the way for more innovation and inclusion in the region.
SEC to Approve Spot BTC-ETF Applications by End of November, Says Valkyrie Top Manager.
The crypto community is eagerly awaiting the decision of the US Securities and Exchange Commission (SEC) on several Bitcoin exchange-traded fund (ETF) applications. Among them, the Valkyrie Bitcoin Strategy ETF, which aims to invest in spot Bitcoin rather than Bitcoin futures contracts, has attracted a lot of attention.
According to Leah Wald, the CEO of Valkyrie Investments, the SEC is likely to approve the spot Bitcoin ETFs by the end of November. In an interview with Bloomberg, Wald said that she is optimistic about the prospects of the Valkyrie ETF, as well as other spot ETFs from WisdomTree and VanEck.
Wald argued that the spot Bitcoin ETFs would offer more benefits to investors than the futures-based ones, which have already been approved by the SEC. She said that the spot ETFs would have lower fees, higher liquidity, and more accurate tracking of the Bitcoin price.
Wald also said that the spot Bitcoin ETFs would not pose any significant risks to the market or the investors, as they would comply with the existing regulatory framework and use reputable custodians to store the Bitcoin. She added that the SEC has already signaled its openness to approve spot Bitcoin ETFs, as it has asked for public comments on them.
Wald expressed her confidence that the SEC would make a positive decision on the spot Bitcoin ETFs by November 28, which is the deadline for the Valkyrie ETF. She said that she expects a huge demand for the product, as it would provide an easy and secure way for investors to gain exposure to Bitcoin.
Wald concluded by saying that the approval of the spot Bitcoin ETFs would be a major milestone for the crypto industry, as it would boost the adoption and legitimacy of Bitcoin. She said that she hopes that the SEC would recognize the potential of Bitcoin and support its innovation.