Square’s Bitcoin Trading App Is Struggling to Make Money

Square shed light on the state of its fledgling Bitcoin business in its earnings report Wednesday afternoon. The good news for the payment company is that it pulled in $34 million of Bitcoin-related revenue last quarter—the bad news is that Square spent nearly as much to acquire Bitcoin in the first place.

Square, which is best known for its dongle that helps small merchants accept credit cards, began officially offering Bitcoin purchases within its peer-to-peer payment service, Square Cash, in January, following a brief test program.

The Bitcoin trading service appears to be gaining some traction, accounting for nearly 5% of Square’s overall revenue. But the results suggest the company may be struggling to make a profit in the venture’s early days. Here’s a breakdown from the company’s income statement: