Block’s Shares Jump Despite Q4 Bitcoin Revenue Drop

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• Block reported $1.83 billion of bitcoin revenue generated from its Cash App payment service in Q4, 2022, which is a 7% year-over-year drop due to the crypto market collapse.
• Despite this decline, Block’s shares jumped nearly 7% after reporting positive overall financial results.
• Cash App generated over $7 billion of BTC revenue throughout 2022 and accounted for $156 million of BTC gross profit.

Block Reports Q4 Bitcoin Revenue

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.

Impact on Yearly Results

The total sale amount of bitcoin sold to customers, which Block recognizes as bitcoin revenue, was down 7% year over year. Furthermore, Cash App’s BTC gross profit in Q4 2022 was $35 million, a 25% decline compared to the last quarter of 2021. In total during 2022, Cash App generated over $7 billion worth of BTC revenue and accounted for $156 million worth of gross profits.

Shares Jump Despite Decline

Despite reporting a dip in its bitcoin revenues for Q4 2022 compared to previous quarters, Blocks shares climbed nearly 7% after posting positive overall financial results.

Crypto Market Influence

The reduced bitcoin revenues in Q4 is attributed to the crypto market collapse that occurred last year and caused cryptocurrencies like Bitcoin (BTC) to fall significantly in value against fiat currencies such as US Dollar (USD).

Conclusion

Overall it appears that despite declines in Bitcoin related revenues for Block, investors remain optimistic about their performance going forward given their strong overall financial results for Q4 2022 and beyond.