On November 3, Cash App switched on a new feature called Bitcoin Bonus, and Block co-founder Jack Dorsey amplified the announcement with a blunt two-word endorsement: “turn it on.” The pitch is simple and genuinely novel for a mainstream US money app—opt in, keep some bitcoin parked in Cash App, and earn weekly bitcoin rewards just for holding. No lockup, no lending, no staking.
That sounds a lot like interest on a savings account, except it’s paid in a volatile asset and it’s taxable. Below is a plain-English breakdown of how the program actually works, how to turn it on, and the fine print worth understanding before you do.
What Is Cash App’s Bitcoin Bonus?
Bitcoin Bonus is an opt-in rewards program that pays you additional bitcoin for holding bitcoin in your Cash App account. According to Cash App, eligible users can earn up to 2% in BTC annually, with rewards dropped into your account weekly in sats (satoshis, the smallest unit of bitcoin) and logged straight to your activity feed.
The most important clarification up front, because several headlines got it wrong: the rate is up to 2% per year, paid out weekly—not 2% per week. Two percent a week would be an astronomical, unsustainable return. Think of the “up to 2%” the way you’d read an annual percentage yield, just sliced into 52 small weekly deposits.
Cash App is explicit that this is not a lending or staking product. Your bitcoin isn’t loaned out to third parties, isn’t locked up, and stays available to spend, send, or withdraw at any time. You can also turn the feature off whenever you want.
How to Opt In (Step by Step)
- Open Cash App and make sure the app is updated to the latest version.
- Tap the Bitcoin tab (the “₿” / Money or Bitcoin section).
- Look for the Bitcoin Bonus banner or menu item and select it.
- Review the terms, then opt in / toggle it on.
- Hold bitcoin in Cash App. Rewards begin accruing and are paid weekly in sats to your activity feed.
Eligibility generally requires a US account that has completed identity verification (IDV), is able to buy bitcoin, and is in good standing (no negative balance, no suspension or restriction, no unresolved tax B-Notices). It is not available everywhere—state-level restrictions can apply, as they do with other Cash App bitcoin promotions.
How the Rewards Are Calculated: Worked Examples
The reward is based on the amount of bitcoin you hold, annualized at up to 2% and paid weekly. “Up to” matters—your actual rate may be lower, and Cash App can change it. Here’s roughly what the top advertised rate looks like at different balances:
| BTC held (USD value) | Max annual bonus (~2%) | Approx. weekly bonus |
|---|---|---|
| $100 | ~$2.00 in BTC | ~$0.04/week |
| $1,000 | ~$20 in BTC | ~$0.38/week |
| $5,000 | ~$100 in BTC | ~$1.92/week |
| $25,000 | ~$500 in BTC | ~$9.62/week |
Example: Say you hold $1,000 worth of bitcoin and earn the full 2%. Over a year that’s about $20 in bitcoin, delivered as roughly 38 cents of sats each week. It’s a modest “stack more sats” incentive rather than a get-rich scheme—useful if you were going to hold bitcoin anyway, far less meaningful as a reason to buy in.
The Catches You Should Understand First
1. You’re paid in bitcoin, so the dollar value can drop
This is the single biggest catch. Your rewards are bitcoin, and so is the balance earning them. A 2% annual bonus does nothing to protect you from price swings. If you hold $1,000 in BTC and bitcoin falls 10% over the year, your stake is worth around $900 plus roughly $20 of bonus BTC—still a net loss in dollar terms. The bonus is a small tailwind, not a hedge.
2. It’s taxable
Cash App states the bonuses may be considered taxable income. In the US, rewards like these are generally treated as ordinary income at the fair-market value of the bitcoin when you receive it. That value also becomes your cost basis, so when you later sell, you’ll owe capital gains (or book a loss) on the difference. Because rewards land weekly, you’re technically creating 52 small taxable events a year—worth noting if you like tidy records. You’re responsible for reporting; consider a crypto tax tool or a professional if your activity is significant.
3. “Up to 2%” is a ceiling, not a promise
The advertised figure is a maximum. Your effective rate could be lower, may vary, and Cash App reserves the right to change or end the program. Don’t build a budget around it.
4. Opting in keeps bitcoin in a custodial app
To earn, your bitcoin has to sit in Cash App rather than in self-custody (your own wallet). That’s a convenience-versus-control tradeoff. Cash App says the BTC isn’t lent out and stays withdrawable—but it’s still custodial, meaning Cash App holds the keys while it’s there.
Bitcoin Bonus vs. Cash App’s Other Bitcoin Rewards
Don’t confuse Bitcoin Bonus with Cash App’s other BTC perks. They stack differently:
- Bitcoin Bonus — rewards for holding bitcoin (the new, up-to-2% weekly program).
- Bitcoin Back / Boost — rewards for spending with your Cash Card or buying at participating Square sellers (e.g., a percentage back in BTC on purchases).
- Limited-time promos — one-off offers like a fixed-dollar bonus for buying bitcoin during a set window.
Is It Worth Turning On?
If you already hold bitcoin in Cash App and understand the risks, opting in is close to free upside: you get a little extra BTC for doing what you were already doing, with no lockup and the ability to opt out anytime. If you don’t currently own bitcoin, a 2% annual bonus is a weak reason on its own to buy a famously volatile asset—the price risk dwarfs the reward. Decide whether you want exposure to bitcoin first; treat the bonus as a bonus.
Frequently Asked Questions
Is Cash App’s Bitcoin Bonus 2% per week?
No. It’s up to 2% per year, paid out in small weekly installments of sats. A 2%-per-week return would be unrealistic; the weekly payout is just the annual rate divided across the year.
Is my bitcoin locked up or loaned out if I opt in?
Cash App says there’s no lockup and your bitcoin isn’t used in lending or staking—it stays available to spend, send, or withdraw at any time, and you can turn the feature off whenever you like. It is still held in a custodial account while it’s in the app.
Do I owe taxes on Bitcoin Bonus rewards?
Likely yes. Cash App notes the rewards may be taxable, and in the US such rewards are generally treated as ordinary income at their value when received, with potential capital gains or losses when you later sell. You’re responsible for reporting; keep records or use a crypto tax tool.
How do I turn Bitcoin Bonus off?
Go back to the Bitcoin tab in Cash App, open the Bitcoin Bonus settings, and opt out. Turning it off doesn’t affect the bitcoin you already hold or rewards already paid.
The Bottom Line
Bitcoin Bonus is a low-friction way to earn a bit more BTC for holding bitcoin you already have in Cash App—no lockup, opt out anytime, up to 2% a year paid weekly. Just go in clear-eyed: the rewards are bitcoin (so their dollar value can fall), they’re taxable, and “up to 2%” is a ceiling that can change. If you understand and accept bitcoin’s volatility, flipping it on is reasonable. If you don’t, the bonus alone isn’t a reason to start.
WalletWisp is informational only and not financial, investment, or tax advice. Verify current terms in Cash App and consult a qualified professional for your situation.
