Block (formerly known as Square), an American multinational technology conglomerate founded by Jack Dorsey, disclosed $1.83 billion of bitcoin revenue generated by its Cash App payment service in Q4 2022.
The figure was nearly $2 billion in Q4 2021, with the company blaming the downturn on the decline of the crypto market.
However, Block shares rose nearly 7% after reporting positive overall financial results.
BTC revenue falls 7% yoy
Block’s bitcoin revenue in the fourth quarter of last year slightly increase compared to $1.76 billion achieved in the third quarter. Nonetheless, the numbers in Q4 2021 (when BTC was on a bull run, reaching an ATH of almost $70,000) were higher:
“The total amount of bitcoin sold to customers, which we recognize as bitcoin revenue, was $1.83 billion, down 7% year-over-year.”
Cash App, Block’s peer-to-peer payment app, generated over $7 billion of BTC revenue during 2022 and accounted for $156 million of gross BTC earnings, down 29% and 28% year-over-year, respectively. Bitcoin gross profit in the fourth quarter of 2022 was $35 million, a 25% decrease compared to the last quarter of 2021.
“The year-over-year revenue decline was driven by a decrease in the total dollar amount of bitcoin sold to customers, which we recognize as bitcoin revenue, and gross bitcoin revenue was 2% of bitcoin revenue on the quarter,” Block said. .
The firm explained that the decline is due to the cryptocurrency market crash last year. Bitcoin started trading in 2022 at around $47,000 and ended at about $16,500 (a 65% drop).
Stocks Head North
Contrary to the bitcoin-related numbers, Block’s overall financial results were quite impressive. Its gross profit for all of 2022 reached nearly $6 billion, $1.66 billion of which was recorded in the fourth quarter. This has been the most successful quarter after the first quarter accounted for $1.29 billion, the second quarter: $1.47 billion, and the third quarter: $1.57 billion.
Gross profit generated by Cash App last year was $3 billion, up 30% from the 2021 figure. $848 million was raised in the fourth quarter (again, the strongest quarter).
Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased slightly from $1.01 billion in 2021 to $991 million in 2022.
company shares scaled more than 7% in pre-market sales after announcing the results, increasing to nearly $80. The shares are still a long way from their all-time high of more than $275 reached in early 2021.
Binance Free $100 (Exclusive) – Use this link to sign up to receive $100 free and 10% off your first month’s fees for Binance Futures (terms).
PrimeXBT Special Offer – Use this link to sign up and enter the code POTATO50 to receive up to $7,000 on your deposits.
