Mobile payment service "Square" posted an impairment loss related to Bitcoin of 4.9 billion yen, while revenue tripled

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Mobile payment service Square has announced its second quarter 2021 financial results, announcing that Bitcoin-related investments have resulted in a $45 million impairment loss to the company's operating profit. On the other hand, gross profit recorded 1.14 billion dollars (about 125 billion yen), which is a 91% increase compared to the same period last year. Q2 2021 Shareholder Letter(PDF file)https://s27.q4cdn.com/311240100/files/doc_financials/2021/q2/2Q21-Square-Second-Quarter-Shareholder-Letter. pdf

Square posts $45 million in bitcoin-related impairments in second quarterhttps://www.cnbc.com/2021/08/02/square-posts-45-million-in -bitcoin-related-impairments-in-q2.htmlSquare's Cash App Q2 Bitcoin Revenue Rose 200%, Takes $45M Bitcoin Impairment Loss - CoinDeskhttps://www. coindesk.com/squares-cash-app-q2-bitcoin-revenue-rose-200-45m-bitcoin-impairment-taken Square announced in October 2020 that it had invested $50 million at the time (about Purchased 4709 BTC, which was equivalent to 5.3 billion yen). In February 2021, it purchased an additional 3,318 BTC worth $ 170 million (about 18 billion yen), increasing the proportion of Bitcoin in total assets.

Bitcoin fluctuates wildly, and after peaking at over 6.5 million yen per bitcoin in April, it fell below 3.5 million yen in early July, reaching 4.3 million yen at the time of writing the article. It is about The number of companies investing in crypto assets is increasing, but bitcoin is accounted for as an intangible asset with an indefinite useful life, and if the value of bitcoin falls below its book value, impairment treatment is required. . According to Square's financial report, in the second quarter of 2021, it recorded an impairment loss of $ 45 million (about 4.9 billion yen), more than double the amount in the first quarter. As of June 30, 2021, the fair value of the company's bitcoin investment is $281 million (approximately ¥30.7 billion), exceeding the book value by $127 million (approximately ¥13.9 billion). It is On the other hand, CashApp, a remittance application, recorded a gross profit of $ 1.14 billion (about 125 billion yen), an increase of 91% year-on-year. In addition, Bitcoin sales amounted to 2.72 billion dollars (about 297.2 billion yen), and gross profit was 55 million dollars (about 6 billion yen), which was about three times higher than the same period last year. Bitcoin-related revenue growth is believed to be a result of the surge in Bitcoin prices and increased demand.

Square also said in its earnings call that it is planning to enter new markets and expand markets. On August 2, it announced that it would acquire "Buy Now, Pay Later" Afterpay for approximately 3.2 trillion yen, and in Australia it has also started offering loans to distributors. .

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