Jack Dorsey’s payments company Block Inc. reported $1.83 billion in Bitcoin (BTC) revenue from its Cash App business unit in the fourth quarter, down 7% from the same period of the year. past.
In his fourth quarter and full year results Announced on Feb. 23, Block attributed the drop in Bitcoin revenue to the fall in the price of BTC for the year. Bitcoin fell approximately 65% throughout 2022.
This drop in revenue led to a 25% year-over-year drop in gross Bitcoin earnings for Cash App, which fell to $35 million in the quarter.
Cash App is a mobile phone payment processing application created by Block, which added support for transactions via the Bitcoin Lightning Network on October 25. Generate Bitcoin income by selling Bitcoin to customers through the app.
For the full year of 2022, Cash App generated $7.11 billion in Bitcoin revenue and $156 million in gross Bitcoin profit, down 29% and 28% from 2021, respectively.
Meanwhile, Block Inc. reported an expanded net loss of $114 million for the quarter compared to a loss of $77 million in 2021. Its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 53% to $281 million. compared to the same time last year. Total revenue for the quarter was $4.65 billion.
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Block’s share price jumped in after-hours trading following the earnings report.
Some analysts have attributed the company’s leap in gross profit growth, which increased 40% in the fourth quarter compared to a year earlier, and also exceeded analysts’ expectations.
