• Block reported $1.83 billion of bitcoin revenue in Q4 2022, a 7% decrease from the previous year.
• The company attributed the reduced revenue to the crypto market collapse last year.
• Despite this, Block’s shares jumped 7% after reporting positive overall financial results.
Block Reports Reduced Bitcoin Revenue in Q4
Block reported $1.83 billion of bitcoin revenue generated from its Cash App payment service in Q4, 2022 – a 7% decrease compared to the same period of 2021. The company attributed the reduced revenue to the crypto market collapse that occurred last year.
Cash App Generates Over $7 Billion in BTC Revenue Throughout 2022
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.
Block Shares Jump Despite Reduction in Bitcoin Revenue
Despite the reduction in bitcoin revenue, Block’s shares climbed nearly 7% after reporting positive overall financial results. This indicates investors remain confident about the company’s long-term prospects despite short-term fluctuations in cryptocurrency markets.
Crypto Market Collapse Affects Overall Revenues
The crypto market collapse had a significant effect on Block’s overall revenues for Q4 2022 as well: total net revenues declined 6%. However, the company is optimistic about its future performance as it continues to focus on increasing customer acquisition and creating new products that leverage its technology infrastructure and network effects capabilities.
Overall, despite declining Bitcoin revenues due to market conditions, Block stocks rose 7%, indicating that investors are still confident about its long term prospects going forward. Moreover, as Block continues to develop new products and increase customer acquisition rates it will be able to better withstand any future downturns or market volatility related to cryptocurrencies and blockchain technology more broadly