Block attributed the reduction in Bitcoin revenue 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 revenue, 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 via mobile phones. On October 25th, functionality for transactions made via the Bitcoin Lightning Network was added to Cash App. It does this by offering Bitcoin sales to its consumers through the app, which brings in money.
Graph of Cash App’s gross profit from the fourth quarter of 2021 to the fourth quarter of 2022 Block Inc. shareholder letter for the fourth quarter
Throughout the full 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.
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In the meantime, 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 earnings 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.
Bitcoin bearish seeks to push the price of Bitcoin (BTC) below $23,000 in advance of the options expiration this month. Following the release of the results report, the after-hours trading of Block’s shares resulted in a significant price increase.
The price movement of Block Inc. shares (SQ) over the course of the previous day. Barron’s is the source.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 attributed by some analysts to the surge in revenue.
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