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  5. Block Report: Bitcoin Cash App Sales Reached $1.73 Billion in Q1 2022

Block Report: Bitcoin Cash App Sales Reached $1.73 Billion in Q1 2022

Block Report: Bitcoin Cash App Sales Reached $1.73 Billion in Q1 2022

Block, formerly known as Square, announced Thursday that its Cash app generated $1.73 billion in bitcoin purchases in the first quarter of 2022.

Launch Report Included Q1 2022

Block Inc, the fintech company run by Twitter founder Jack Dorsey, missed market expectations for first-quarter earnings on Thursday as demand for bitcoin slowed due to a drop in cryptocurrency prices. .

According to a letter to shareholders published after the market close, these sales generated $43 million in gross bitcoin profits during this period.

“Cash App generated $1.73 billion in bitcoin revenue and $43 million in gross bitcoin earnings during the first quarter of 2022, down 51% and 42% year-over-year, respectively. On a two-year CAGR basis, bitcoin revenue and gross profit grew 138% and 155%, respectively,” Block said in his letter to shareholders, adding:

“The year-over-year decline in bitcoin revenue and gross profit was primarily due to the relative stability of the bitcoin price during the quarter, which affected consumer demand and business activity compared to the prior year period. Bitcoin revenue and gross margin were relatively consistent compared to Q4 2021. Over the next several quarters, Bitcoin revenue and gross margin may fluctuate due to changing customer demand or the market price of Bitcoin. .

In the three months ending March 31, Block’s sales fell 22% to $3.96 billion. According to IBES statistics from Refinitiv, the company generated adjusted earnings of 18 cents per share, below analysts’ expectations of 21 cents.

BTC/USD falls back to $36,000. Source: Business View

The company reported a net loss of $204 million in the first quarter, or 38 cents a share, compared with net income of $39.0 million a year ago, or 8 cents a share.

However, the company’s Cash app, which allows people to make payments with bitcoin, saw a 26% increase in gross revenue.

Related Article | Block, formerly Square, announces the construction of a Bitcoin mining system

Post-pandemic spending contributed to the rise

Consumers have been spending heavily on vacations and dining two years into the pandemic, despite inflationary pressures, supporting the company’s strong profitability.

According to Block, more than 10 million Cash App accounts have purchased bitcoin since the program launched at the end of the quarter.

In after-hours trading on Thursday, shares of Block were up 4% at $99.50. Shares fell more than 10% ahead of the company’s earnings report on Thursday, while the Nasdaq fell 5%.

Block deposits. source: The Block

Cash App earned $46 million in gross revenue from bitcoin sales in Q4 2021, generating $1.96 billion in revenue. When broken down by year, the company’s 2021 bitcoin sales were just over $10 billion, totaling $218 million in gross profit.

At 5 pm ET, Block will have a call with investors to discuss the results.

Related Reading | Boomer Billionaire Investor puts half of his net worth in Bitcoin. But why?

Featured image from Getty Images, graphic from TradingView.com

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