Block's Cash App Bitcoin Revenue Falls 7%
Rebeca Moen Feb 27, 2023 07:52
Jack Dorsey's Block Inc. reported a 7% reduction in Bitcoin sales in Q4, with its Cash App producing $25 million of BTC gross profit, down 25% YoY.
The Cash App business section of Jack Dorsey's payment startup, Block Inc., reported Bitcoin (BTC) revenue of $1.83 billion in the fourth quarter, which is a 7% decrease from the same period last year.
Block attributed the reduction in Bitcoin income to the decline in the price of BTC during the year, which was reported in its quarterly and full-year results on February 23. Bitcoin's price dropped by nearly 65 percent throughout the course of 2022.
Due to the decrease in sales, Cash App's Bitcoin gross profit decreased by 25% year-on-year, coming in at $35 million for the quarter. This was the lowest quarterly total since the company began reporting Bitcoin earnings.
Block's Cash App is an application for processing payments made using mobile phones. On October 25th, functionality for transactions made via the Bitcoin Lightning Network was enabled to Cash App. It does this by offering Bitcoin sales to its consumers via the app, which brings in money.
In the entire year of 2022, Cash App made $7.11 billion in Bitcoin revenue and $156 million in Bitcoin gross profit, representing decreases of 29% and 28%, respectively, when compared to 2021's figures.
In the meanwhile, Block Inc. reported a significantly increased net loss for the quarter, coming in at $114 million. This is compared to a loss of $77 million in 2021. When compared to the same period of the previous year, its adjusted profits before interest, tax, depreciation, and amortization (EBITDA) rose to $281 million, or a 53% rise. The aggregate amount of revenue during the period was $4.65 billion.
Following the release of the results report, the after-hours trading of Block's shares resulted in a significant price increase.
The increase in the company's gross profit, which was up 40% in Q4 compared to the same period the previous year and also above expert estimates, has been ascribed by some analysts to the surge in revenue.
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