Twitter hacking incident casts a shadow! Square's Q2 financial report brings good news: Bitcoin trading revenue reaches $870 million.

Square, the electronic payment company founded by Twitter CEO Jack Dorsey, recently released its second-quarter financial report. Following a significant increase in revenue for the quarter, the stock price of Square Inc (SQ) surged once again, rising over 131% year-to-date.

Strong Performance During Pandemic Turmoil

According to the Q2 financial report, the second-quarter net revenue was $1.92 billion, a 64% year-over-year increase from $1.17 billion in the same quarter last year, which is heavily attributed to users investing in Bitcoin.

During the bear market in the crypto market in 2018, Square ventured into the Bitcoin business by offering Bitcoin buying and selling services to users through its flagship application Cash App. In just the second quarter of this year, users' total Bitcoin purchases on Cash App reached $875 million, bringing Square a gross profit of $17 million, marking a 143% increase from the previous quarter and setting a new quarterly record.

The report stated to shareholders:

In the past, financial services were often limited to privileged individuals, but in June, Square had over 30 million monthly active users, and we have always aimed to provide financial services with equality.

Challenging PayPal and Robinhood

Cash App had an outstanding performance in the first quarter of this year, with a gross profit of $590 million. Amid the ongoing COVID-19 pandemic, Cash App supported government disbursements, allowing people to receive relief funds directly, transforming into a window for online virtual banking during the crisis. Square's CFO, Amrita Ahuja, told CNBC:

We believe it is very meaningful for users to be able to deposit stimulus checks directly into Cash App. Unemployment benefits and tax refunds further drive the expansion of Cash App. However, with ongoing fiscal uncertainty, these adoption trends will eventually normalize.

With a vision of financial inclusion, Cash App continues to strengthen its features. In terms of payment functionality, it competes with PayPal's payment app Venmo; and in terms of investment features, introducing stock trading functionality is a direct challenge to mainstream investment platform Robinhood.

Despite the large-scale hacking incident on Twitter in July casting a shadow on Twitter's security measures again, founder Jack Dorsey still seems hopeful for this financial startup platform. He expressed confidence in Cash App on Twitter, saying: Design everything.