Block’s Q4 Bitcoin revenue decreased by 7% due to a drop in the crypto price

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% ‚Äč‚Äčthroughout 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.

Cash Application Gross Earnings Graph from Q4 2021 to Q4 2022 Source: Block Inc shareholder letter in Q4

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.

Related: Bitcoin is trying to stabilize BTC price below $23K before this month’s options expire

Block’s share price jumped in after-hours trading following the earnings report.

Block Inc share price movement (SQ) over the past day. source: Barron

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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