Cash App Reports Bitcoin Revenue Worth $2B
- Jack Dorsey’s Block made an astonishing $2.16 billion in Bitcoin revenue from Cash App in the first quarter of 2023.
- The Bitcoin revenue of the company has increased 18% from $1.83 billion in Q4 and 25% from Q1 2022.
- The company’s stock nosedived after a report from Hindenburg Research claimed that Block duped investors for $1 billion.
- The multi-billion dollar Bitcoin revenues, as per the shareholder document, were “partially offset” by a decline in Bitcoin price.
The crypto winter has affected the businesses of many crypto companies, and crypto exchanges have posted negative earnings for multiple quarters in 2022. Interestingly, Twitter founder Jack Dorsey’s financial technology company, Block, has reported first quarter Bitcoin earnings from its primary product, Cash App. Block has suffered severe damage to its business due to a recent short position opened by US-based investment research firm Hindenburg Research LLC.
According to a recent shareholder letter, Block made an astonishing $2.16 billion in Bitcoin revenue from Cash App in Q1 2023. It is important to note that the company’s Bitcoin revenue — which counts Bitcoin revenue as total sales of the crypto to customers — has increased 18% from $1.83 billion in Q4 and 25% from Q1 2022.
The announcement states:
“We have generated gross profit of $1.71 billion, up 32% year over year. Cash App generated gross profit of $931 million, up 49% year over year, and Square generated gross profit of $770 million, up 16% year over year.”
In the first quarter of 2023, Cash App’s overall profits exceeded $931 million, indicating a 49% year-over-year growth. In particular, Cash App’s profit exceeded the company’s gross profit, which totaled $1.71 billion.
The document reports that the growth in Q1 2023 was driven by “transaction fees from both Cash App Card and Instant Deposit, as well as contributions from our BNPL platform, interest earned on customer funds, and revenue from other financial services products.”
The multi-billion dollar Bitcoin revenues, as per the shareholder document, were “partially offset” by a decline in Bitcoin price, compared to the same time period in 2022, and were fueled by “an increase in the quantity of Bitcoin sold to customers.”
Along with its revenue for the first quarter increasing 26% year over year, the fintech company also posted earnings per share of 40 cents, exceeding analyst projections of 35 cents per share by 14%. However, the renowned business payment service Square, which is also owned by Block, reported a small decline (3.8%) in profits for Q4 2022.
During the earnings conference call, Dorsey mentioned “open protocols” and artificial intelligence as technologies that would help the company respond effectively to the “significant shifts” in the global financial system. He identified de-dollarization and ongoing bank failures in the US as the primary causes.
Interestingly, Block has just introduced around 100 new products, features, and partnerships across Square’s ecosystem to aid sellers in diversifying their income sources and automating more of their business operations.
As reported earlier by BitcoinWisdom, the founder of Cash App, Bob Lee, was stabbed to death earlier this year. 38-year-old Nima Momeni, a resident of Emeryville, a city located in northwest Alameda County, California, was arrested for the murder of the entrepreneur. San Francisco Police Chief Bill Scott revealed that, as per the family of the deceased, Lee and Momeni knew each other prior to the incident.
It is crucial to note that the price of Block’s stock has crashed significantly over the past few months, and investors are down significantly on their investments. The stock took a massive dip after Hindenburg Research released a lengthy research report claiming that the company was responsible for a $1 billion loss.