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Block’s Q1 Bitcoin Revenue Rises 18% From Q4, Gains 25% From a Year Ago

Block’s Q1 Bitcoin Revenue Rises 18% From Q4, Gains 25% From a Year Ago

Block’s Q1 Bitcoin Revenue Rises 18% From Q4, Gains 25% From a Year Ago

The company booked $50 million in bitcoin gross profit in the first quarter..

The company booked $50 million in bitcoin gross profit in the first quarter..

The company booked $50 million in bitcoin gross profit in the first quarter..

AccessTimeIconMay 4, 2023, 8:56 PM
Updated May 9, 2023, 4:13 AM
(Shutterstock)
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Fintech firm Block (SQ) reported $2.16 billion in bitcoin revenue in its Cash App unit during the first quarter, up 18% from $1.83 billion in Q4 and up 25% from Q1 2022, the company said in its shareholder letter on Thursday. Block reports the total sale amount of bitcoin to customers as revenue.

Cash App generated $50 million in bitcoin gross profit in the first quarter, up 43% from Q4 and ahead 16% year over year. The company as a whole reported $770 million in gross profit in Q1, up 16% year over year.

Thanks to a rise in the price of bitcoin, the company did not book an impairment loss on its bitcoin holdings in the first quarter. Block reported an impairment charge of $9 million in Q4 on its bitcoin investment and an impairment of $47 million for the full year in 2022.

As of March 31, the fair value of Block's bitcoin holdings was $229 million versus the carrying value of $126 million recognized on the balance sheet. Block's original purchase price on its bitcoin holdings was $220 million.

Overall, the company reported Q1 revenue of $5 billion, topping estimates by $390 million; non-GAAP earnings per share of 40 cents beat expectations by 6 cents.

Shares are higher by 2.4% in after-hour trading.

Edited by Stephen Alpher.

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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.

Stephen Alpher is CoinDesk's managing editor for Markets. He holds BTC above CoinDesk’s disclosure threshold of $1,000.


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