Block's Q4 Cash App bitcoin profit drops 25%
Quick Take
- Block reported a 25% drop to $35 million in bitcoin gross profit for the fourth quarter from its Cash App.
- The total sale amount of bitcoin sold to customers, recognized as bitcoin revenue, was $1.83 billion, down 7% year-over-year.
Block reported its fourth-quarter bitcoin gross profit from its Cash App dropped by one-quarter to $35 million. The total sale amount of bitcoin sold to customers, recognized as bitcoin revenue, was $1.83 billion, down 7% year-over-year.
The year-over-year decrease in bitcoin revenue and gross profit was driven by a decline in the price of bitcoin. For the full year, Cash App generated $7.11 billion of bitcoin revenue and $156 million of bitcoin gross profit, down 29% and 28% year-over-year, respectively. Shares were up more than 2% after hours.
Gross profit for the company as a whole increased 40% to $1.66 billion from a year earlier.
In the fourth quarter, the firm recognized a bitcoin impairment loss of $9 million on its bitcoin investment, and for the full year, it recognized a bitcoin impairment loss of $47 million.
As of Dec. 31, "the fair value of our investment in bitcoin was $133 million based on observable market prices, which was $30 million greater than the carrying value of the investment after cumulative impairment charges," the company said in its earnings release.
Block reported fourth-quarter net revenues of $4.65 billion, up 14% from 2021. For the full year, net revenues were roughly flat at $17.53 billion.
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