Block (formerly known as Square) – an American multinational technology conglomerate founded by Jack Dorsey – disclosed .83 billion of bitcoin revenue generated from its Cash App payment service in Q4, 2022. The figure was nearly billion in the fourth quarter of 2021, and the company blamed the decline of the crypto market for the downturn. However, Block’s shares climbed nearly 7% after reporting positive overall financial results. BTC Revenue Drops 7% YoY Block’s bitcoin revenue in the fourth quarter of last year slightly increased compared to the .76 billion reached in Q3. Nonetheless, the numbers in Q4 2021 (when BTC was on a bull run, reaching an ATH of almost ,000) were higher: “The total sale amount of bitcoin sold to customers, which we recognize as
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Block (formerly known as Square) – an American multinational technology conglomerate founded by Jack Dorsey – disclosed $1.83 billion of bitcoin revenue generated from its Cash App payment service in Q4, 2022.
The figure was nearly $2 billion in the fourth quarter of 2021, and the company blamed the decline of the crypto market for the downturn.
However, Block’s shares climbed nearly 7% after reporting positive overall financial results.
BTC Revenue Drops 7% YoY
Block’s bitcoin revenue in the fourth quarter of last year slightly increased compared to the $1.76 billion reached in Q3. Nonetheless, the numbers in Q4 2021 (when BTC was on a bull run, reaching an ATH of almost $70,000) were higher:
“The total sale 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 application – generated over $7 billion of BTC revenue throughout 2022 and accounted for $156 million of BTC gross profit, down 29% and 28% year-over-year, respectively. Bitcoin gross profit in Q4 2022 was $35 million, a 25% decline compared to the last quarter of 2021.
“The year-over-year decline in revenue was driven by a decrease in the total dollar amount of bitcoin sold to customers, which we recognize as bitcoin revenue, and bitcoin gross profit was 2% of bitcoin revenue in the quarter,” Block stated.
The firm explained the dwindling comes as a result of the crypto market crash last year. Bitcoin started 2022 trading at around $47,000 and finished at approximately $16,500 (a 65% drop).
Shares Headed North
Contrary to the bitcoin-related figures, Block’s overall financial results were quite impressive. Its gross profit for the entire 2022 tapped almost $6 billion, $1.66 billion of which were recorded in Q4. This has been the most successful quarter after Q1 accounted for $1.29 billion, Q2 – $1.47 billion, and Q3 – $1.57 billion.
Gross profit generated from Cash App last year equaled $3 billion, 30% more than the figure in 2021. $848 million were collected in Q4 (again, the strongest quarter).
Earnings before interest, taxes, depreciation, and amortization (EBITDA) slightly decreased from $1.01 billion in 2021 to $991 million in 2022.
The shares of the company climbed over 7% at pre-market sales after announcing the results, rising to nearly $80. The stocks are still far from their all-time high of over $275 reached at the beginning of 2021.