Jack Dorsey's Payments Firm Block Inc. Reports Bitcoin Worth $1.83 Billion, Revenue at its cash application business unit fell 7% in the fourth quarter from a year earlier.
In its fourth-quarter and full-year results, announced on Feb. 23, Block attributed the drop in bitcoin revenue to the drop in BTC prices that year. Bitcoin is down about 65% throughout 2022.
This revenue drop resulted in a 25% year-over-year decline in Cash App’s gross bitcoin profit, which fell to $35 million in the quarter. Cash App, a mobile payment processing app created by The Block, added support for transactions over Bitcoin’s Lightning Network on Oct. 25. It generates bitcoin revenue by selling bitcoins to customers through the app. For all of 2022, Cash App generated $7.11 billion in Bitcoin revenue and $156 million in Bitcoin gross profit, down 29% and 28%, respectively, from 2021.
Meanwhile, Block Inc. reported a widening net loss to $114 million for the quarter, compared with a loss of $77 million in 2021. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 53 percent to $281 million last year. Total revenue for the quarter was $4.65 billion. Some analysts attributed the increase to the company's higher gross profit, which also beat analysts' expectations with a 40% year-over-year increase in fourth-quarter gross profit.
