Block’s Q4 Bitcoin Revenue Fell 7% Year Over Year to $1.83B

For the full year, Block’s bitcoin revenue declined 29% from 2021 due to the fall in the price of bitcoin, the company said.

AccessTimeIconFeb 23, 2023 at 9:36 p.m. UTC
Updated May 9, 2023 at 4:08 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Fintech firm Block (SQ) reported $1.83 billion in bitcoin (BTC) revenue in its Cash App unit during the fourth quarter, down 7% year over year but higher than the $1.76 billion reported in the third quarter. Block reports the total sale amount of bitcoin to customers as revenue.

Cash App generated $35 million in bitcoin gross profit in the quarter, down 25% from the year earlier and slightly less than the $37 million reported in the third quarter.

  • Bitcoin Ecosystem Developments in 2023 as BTC Hits Fresh 2023 High
    08:42
    Bitcoin Ecosystem Developments in 2023 as BTC Hits Fresh 2023 High
  • Bitcoin Extends Rally as $1B in BTC Withdrawals Suggests Bullish Mood
    01:10
    Bitcoin Extends Rally as $1B in BTC Withdrawals Suggests Bullish Mood
  • Why Financial Advisors Are So Excited About a Spot Bitcoin ETF
    1:02:43
    Why Financial Advisors Are So Excited About a Spot Bitcoin ETF
  • When Could Traders See the Arrival of a Spot Bitcoin ETF?
    02:21
    When Could Traders See the Arrival of a Spot Bitcoin ETF?
  • The year-over-year decline in bitcoin revenue and gross profit was driven by the fall in the price of bitcoin, Block said in its quarterly shareholder letter Thursday.

    For the full year of 2022, Cash App generated $7.11 billion of bitcoin revenue and $156 million of bitcoin gross profit, down 29% and 28%, respectively, from the previous year.

    Block recorded an impairment charge of $9 million on its bitcoin investment during the fourth quarter, compared to $2 million in the third quarter. For the full year of 2022, Block recognized a bitcoin impairment loss of $47 million.

    As of Dec. 31, the fair value of Block's bitcoin investment was $133 million based on “observable market prices,” which was $30 million greater than the carrying value of the investment after impairment charges, the company noted.

    Overall, the company reported adjusted earnings per share of 22 cents on $4.65 billion in revenue, compared to analyst estimates of EPS of 30 centsand revenue of $4.63 billion, according to FactSet.

    Shares of Block were up 0.6% in post-market trading Thursday to $74.54. Shares are up 17% this year but down 22% over the past year.

    UPDATE (Feb. 23 21:48 UTC): Added company's overall results.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Nelson Wang

    Nelson Wang was CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.