Block, formerly known as Square, reported surging sales of bitcoin on its Cash App platform in the first quarter of the year. 

In an earnings release on Thursday, the company said it sold $2.2 billion worth of bitcoin in the quarter, a 25% year-over-year increase. That's also an increase from $1.8 billion sold in the fourth quarter of last year.

Gross profits from bitcoin sales were $50 million, according to the Q1 shareholder letter. 

"The year-over-year increase in bitcoin revenue and gross profit was driven by an increase in the quantity of bitcoin sold to customers, partially offset by a decrease in the market price of bitcoin compared to the prior-year period," Block said.

Block profits rise

Block reported an overall gross profit of $1.7 billion, a 32% year-over-year increase, with total revenue of just under $5 billion in the period. 

"Transaction-based revenue was $1.4 billion in the first quarter of 2023, up 15% year over year, and transaction-based gross profit was $602 million, up 16% year over year," Block said.

Cash App profits were $931 million and Square profits weighed in at $770 million, representing year-over-year increases of 49% and 16%, respectively. 

This report will be updated with additional information from Block's 5 p.m. ET earnings call.