• Block Inc.’s fourth quarter report revealed a 7% drop in bitcoin revenue due to the price drops.
• Cash App’s bitcoin gross profit decreased by 25%, coming in at $35 million for the quarter.
• After releasing its earnings report, Block’s stock prices rose significantly due to an increase in gross profits of 40%.
Block Inc.’s Q4 Report Reveals Drop in Bitcoin Revenue
Block Inc.’s fourth quarter report revealed a 7% drop in bitcoin revenue due to the price drops. The company attributed this decrease to Bitcoin’s 65% decline throughout 2022. As a result, Cash App’s bitcoin gross profit decreased by 25%, coming in at $35 million for the quarter. This was the lowest quarterly total since the company began reporting on this metric.
Bitcoin Sales Dropped Year-on-Year
Throughout 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. Despite this, Block reported a significantly increased net loss for the quarter, reaching $114 million and adjusted profits before interest, tax, depreciation and amortization (EBITDA) rose to $281 million – a 53% rise from 2021’s Q4 figure.
Functionality For Transactions Via Lightning Network Enabled
On October 25th functionality for transactions made via the Bitcoin Lightning Network was enabled on Cash App. In addition it offers bitcoin sales to consumers via their app – bringing money into their business model – however these sales are now dropping as shown through their Q4 report.
Afterhours Trading Results In Price Increase
After releasing its results report, Block’s shares experienced an increase through after hours trading which has been credited by some analysts to the surge in revenue that followed from an increase of 40% from 2021’s Q4 figure..
Aggregate Revenue Up By 4th Quarter
The aggregate amount of revenue during the period was reported as being up at $4.65 billion which is up from last year’s figure too – all things considered it was still an overall success story despite lower than expected sales of Bitcoin through cash app services