Jack Dorsey’s payment firm Block reported $1.83 billion in Bitcoin (BTC) revenue from its Cash Applications business unit in the fourth quarter, which is down 7% from the same period last year.
In Q4 and the full year results Block announced on February 23, attributing the drop in Bitcoin revenue to the year’s plunge in BTC’s price. Bitcoin is down nearly 65% throughout 2022.
This drop in revenue led to a 25% year-over-year decline in the Cash App’s Bitcoin earnings, which fell to $35 million in the quarter.
Cash App is a mobile payment processing application created by Block, which added support for transactions via the Bitcoin Lightning Network on October 25th. It generates Bitcoin revenue by selling Bitcoin to customers through the app.
For the full year of 2022, the Cash App generated $7.11 billion in bitcoin revenue and $156 million in total bitcoin revenue, down 29% and 28% compared to 2021, respectively.
Meanwhile, Block Inc. reported a net loss of $114 million prior-quarter compared to a loss of $77 million in 2021. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 53% to $281 million over the same period. time last year. Total revenue for the quarter was $4.65 billion.
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Block’s share price jumped in after-hours trading following the earnings report.
Some analysts have attributed The jump to the company’s total profit growth, which was up 40% in the fourth quarter over a year earlier, also exceeded analysts’ expectations.
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