Cash App Bitcoin Revenue Down 7%
The cash applications business of Block – which belongs to Jack Dorsey, the founder of Twitter – reported the company’s revenue of $1.83 billion in the fourth quarter of 2022, which is a decrease of 7% from the same period in the previous year (2021). .
Block attributed the drop in bitcoin income and revenue to the drop in bitcoin’s price for the year, which was reported in its quarterly and full-year results on February 23.
The Bitcoin price has fallen by almost 65% throughout 2022.
Due to lower sales, the Cash App’s Bitcoin earnings also fell 25% year-over-year, reaching $35 million for the quarter.
This was the lowest quarterly total since the company began reporting bitcoin earnings.
As a reminder, the “Block Cash” application is an application for processing financial payments made using mobile phones.
On October 25, 2022, the functionality of transactions made through the “Lightning Network” networks was enabled for the “Cash” application.
The “Cash” app does this by offering its customers bitcoin sales for which it brings in revenue.
In the whole of 2022, the Cash App generated $7.11 billion in bitcoin revenue and $156 million in total bitcoin revenue, which is a decrease of 29% and 28%, respectively, compared to the 2021 figures.
Meanwhile, Block Inc reported a significant increase in net loss for the quarter, bringing the loss to $114 million.
This compares to a loss of $77 million in 2021.
When compared to the same period in the previous year, adjusted earnings before interest, tax and depreciation (EBITDA) increased to $281 million, an increase of 53%.
Total revenues during this period amounted to $4.65 billion.
After the issuance of the results report, the shares of “Block Inc” were positively affected, hours after the report was announced, and recorded a significant increase in prices.
The increase in the company’s total profit, which rose 40% in the fourth quarter compared to the same period a year earlier and also higher than expert estimates, has been attributed by some analysts to the increase in revenue.