From the Super Mario Wiki
Retrieved from "https://www.mariowiki.com/index.php?title=Square_Cloud&oldid=2729523"
When hit, a Square Cloud turns into a Lakitu that throws coins. However, the level also features Spiny Egg-throwing Lakitus that players can easily mistake for the coin-throwing Lakitus, as the two types are not visually differentiated.
Like standard Lakitus, Lakitus spawned from Square Clouds can damage the player characters on contact. Players can eat these Lakitus with Yoshi, gain points by defeating them, and ride their clouds as usual. Unlike the standard ones, Lakitus spawned from Square Clouds only stay on-screen temporarily and do not respawn.