Block Inc SQ reported a total of $1.83 billion in Bitcoin BTC/USD revenue generated through its Cash App unit during the fourth quarter of 2022, a decrease of 7% year-over-year.
What Happened: Cash App reported $35 million in Bitcoin gross profit in the fourth quarter, a 25% year-on-year decline.
The decline comes “due to the dip in the price of Bitcoin,” Block said in its quarterly shareholder letter released on Thursday.
In the third quarter of 2022, Block’s Cash App unit generated $1.76 billion in revenue.
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For the full year 2022, Cash App generated $7.11 billion in Bitcoin revenue and $156 million in gross profit, a decrease of 29% and 28%, respectively, from the previous year. Additionally, Block incurred an impairment charge of $9 million in BTC investments in the fourth quarter, an increase from the $2 million in losses incurred in the third quarter. For the full year 2022, the Jack Dorsey-owned company observed a Bitcoin impairment loss of $47 million.
Block said fourth-quarter revenue increased 14% year-over-year to $4.65 billion, which beat average analyst estimates of $4.6 billion, according to Benzinga Pro. The company reported quarterly earnings of 22 cents per share, which missed consensus estimates of 30 cents per share.
Price Action: At the time of writing, BTC was trading at $23,981 down 2.23% in the last 24 hours, according to Benzinga Pro. Shares of Block ended 1.6% higher at $74.15 on Thursday and surged 8.71% in extended trading.
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Image and article originally from www.benzinga.com. Read the original article here.