• Block reported a 7% decline in Bitcoin revenue from its Cash App payment service in Q4, 2022.
• The company attributed the drop to the crypto market collapse that occurred last year.
• Despite this, Block’s shares still rose 7% after reporting positive overall financial results.
Block’s Declining Bitcoin Revenue
Block (formerly known as Square) – an American multinational technology conglomerate – reported $1.83 billion of bitcoin revenue generated from its Cash App payment service in Q4, 2022. This was a 7% decrease compared to the $2 billion earned in Q4 2021 and was attributed by the company to the crypto market collapse that occurred last year.
Impact on Cash App
Cash App – Block’s peer-to-peer payment application – generated over $7 billion of BTC revenue throughout 2022 and accounted for $156 million of BTC gross profit, down 29% and 28% year-over-year, respectively. Bitcoin gross profit in Q4 2022 was $35 million, a 25% decline compared to the last quarter of 2021.
Share Price Increase
Despite this decrease in bitcoin revenue, Block’s shares still rose 7% after reporting positive overall financial results. This indicates that investors are confident in the company’s ability to remain profitable despite the current state of the cryptocurrency markets.
Moving forward, it will be interesting to see how Block is able to weather any future downturns in the crypto markets and continue generating profits from its Cash App payment service. With increasing numbers of consumers turning to digital payments solutions like Cash App for their day-to-day transactions, Block is well positioned for success regardless of what happens with cryptocurrencies going forward.
To sum up, Block reported a 7% decrease in bitcoin revenue from its Cash App payment service due to the crypto market collapse last year; however this did not deter investors as they pushed up share prices by 7%. Looking ahead into 2021 and beyond, it will be interesting to observe how the company continues performing financially despite any potential future downturns in cryptocurrencies markets.