Convert sales into bitcoin
About converting sales into Bitcoin
When processing payments with Square, you can automatically convert up to 50% of your daily card sales into bitcoin. This allows you to hold bitcoin directly in your Square account and withdraw it to external bitcoin wallets.
Bitcoin is a secure digital currency that is changing the way the world sends, spends, and saves money. Bitcoin makes it possible to send payments to anyone without the need for a third party like a bank, all you need is an internet connection.
If you were previously using Square bitcoin conversions powered by Cash App, your activity moving forward will now be managed in Square Dashboard and this migration will not impact your existing Cash App bitcoin balance. Moving forward all bitcoin conversion activities, among the other bitcoin features we are introducing to Square, now live within your Square account.
All bitcoin conversions that were powered by Cash App transaction data and history are still available to you in Cash App, and you'll receive a tax form for this activity from Cash App. All new bitcoin conversions activity are available to you within Square, and you'll receive a tax form for this activity from Square.
Eligible sales for bitcoin conversions
Include:
Card payments processed with Square
Cash App Pay payments
Square Invoices paid by card or ACH
Not included:
Cash or check payments
Afterpay transactions
Gift card loads
Incoming ACH transfers
Money added from linked debit cards
Instant funding from delivery partners
Before you begin
Bitcoin conversions have a 1% conversion fee applied to the total amount of your daily converted sales. Learn about Square fees.
Bitcoin conversion percentage must be set in whole-number increments only (e.g., 1%, 5%, 10%). Decimal percentages are not supported and will result in an error message.
Your selected percentage of sales will be converted to bitcoin once daily at the same time each day.
Even if Bitcoin conversions are set, active loans and/or savings accounts will take priority over Bitcoin conversions.
Bitcoin conversions are not supported for businesses located in New York.
On-chain withdrawals can be executed from your Square bitcoin wallet to any external wallet, including your Cash App wallet.
You can configure different bitcoin conversion rates for individual business locations, and pause bitcoin conversions at any location when needed.
All sales that are converted into bitcoin will appear in your Square sales reporting.
You must have two-step verification enabled on your Square account for additional security. Learn how to set up two-step verification.
This feature won’t directly create a tax liability as there are no taxable events associated with buying bitcoin. However, selling bitcoin in Cash App will trigger a taxable event and you’ll receive a 1099-DA Form to file with your annual taxes. Learn how to Download Form 1099-DA and learn more from our tax guide.
All payment processing proceeds are counted as business revenue and should be reported as usual, regardless of your choice to allocate proceeds to bitcoin.
Bitcoin conversions do not impact Square Savings balances or settings. However, you can allocate a portion of your sales to a Square Savings account while converting a separate percentage into bitcoin. You can also purchase Bitcoin directly using funds from a Square Savings account. Learn how to set up a savings account.
Enable bitcoin conversions
To automatically convert a portion of Square card sales into bitcoin, you'll choose a percentage of your sales within Square Dashboard. By default, all locations use the same conversion percentage set. However, you can configure different bitcoin conversion rates for individual business locations. To get started:
Sign in to Square Dashboard and go to Banking.
From the Bitcoin section, click Get started.
Enable two-step verification (2FA) if not already active on your account.
Choose what percentage of your daily sales you'd like to convert to bitcoin, from 1-50% in 1% increments > Next. If you have multiple locations, you can choose whether to set by merchant or by individual locations.
Review and confirm your Bitcoin conversion settings and click Complete Setup.
If Automated Savings or Square Loans are active, they will be applied first. Bitcoin conversions will only apply to the remaining funds. Total allocations can never exceed 100%, and Bitcoin conversions will be automatically reduced if necessary.
Edit or pause bitcoin contributions
To edit the Bitcoin conversion percentage from your Square card sales:
- Sign in to Square Dashboard and go to Banking > Bitcoin.
- In the Manage section, click Locations.
- Choose All locations or Individual.
- Toggle on the locations and increase or decrease your conversion percentage, between 1-50% > Save.
To pause your Bitcoin conversions from your Square card sales:
- Sign in to Square Dashboard and go to Banking > Bitcoin.
- In the Manage section, click Manage > Pause Conversions.
Once disabled, none of your daily sales will be converted into bitcoin for that day. If you have funds that have already been withheld but not yet converted, these funds will be returned to your main account balance and will not be converted. Any existing bitcoin you have will remain in your Square bitcoin wallet. If you decide to unpause it, your conversions will restart within 1 or 2 days.