Block (formerly known as Square) – an American multinational technology conglomerate founded by Jack Dorsey – disclosed $1.83 billion in bitcoin revenue generated from its Cash App payment service in the fourth quarter of 2022.
The figure was nearly $2 billion in the fourth quarter of 2021, and the company blamed the declining crypto market for the slowdown.
However, Block’s shares soared nearly 7% after announcing generally positive financial results.
BTC revenue drops 7% per year
Block’s Bitcoin Revenue in Q4 Last Year Slightly increase compared to the $1.76 billion achieved in the third quarter. Nonetheless, the numbers in Q4 2021 (when BTC was on a bull run, hitting an ATH of nearly $70,000) were higher:
“The total amount of bitcoin sales sold to customers, which we count 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 in BTC revenue throughout 2022 and accounted for $156 million in BTC gross profit, down 29% and 28% year over year, respectively. Bitcoin’s gross profit in the fourth quarter of 2022 was $35 million, down 25% from the last quarter of 2021.
“The year-over-year decline in revenue is due to a decrease in the total dollar amount of bitcoins sold to customers, which we recognize as bitcoin revenue, and gross bitcoin profit was 2% of revenue. in bitcoin during the quarter,” Block said. .
The company explained that the decrease is due to the crypto market crash last year. Bitcoin started 2022 at around $47,000 and ended at around $16,500 (a 65% decline).
Stocks Head North
Unlike bitcoin-related numbers, Block’s overall financial results were quite impressive. Its gross profit for all of 2022 reached nearly $6 billion, of which $1.66 billion was recorded in the fourth quarter. This quarter was the most successful after the first quarter was $1.29 billion, the second quarter – $1.47 billion and the third quarter – $1.57 billion.
The gross profit generated by Cash App last year was $3 billion, 30% more than in 2021. $848 million was collected 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 climb more than 7% to premarket sales after the earnings announcement, hitting nearly $80. The shares are still far from their all-time high of over $275 hit in early 2021.
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