For the fourth quarter, bitcoin (BTC) sales from Block (SQCash )’s App segment were $1.83 billion, down 7% year over year but up from the $1.76 billion recorded in the third quarter. Block counts all of the bitcoins it has sold as income.
Gross profit in bitcoin for Cash App was $35 million, down 25% year over year and down marginally from the $37 million recorded in the third quarter. According to Block’s quarterly shareholder letter released on Thursday, the reduction in bitcoin revenue and gross profit year over year was driven by the fall in the price of bitcoin. Cash App‘s full-year 2022 bitcoin revenue was $7.11 billion, down 29% from the previous year, and bitcoin gross profit was $156.1 million, down 28% from the previous year.
Block Loses Revenue Because Of Crypto Decline
During the fourth quarter, it took an impairment charge of $9 million on its bitcoin investment, up from $2 million in the third quarter. As of the end of 2022, Block has written down $47 million in bitcoin-related losses due to an impairment charge.
Block said that as of December 31st, based on “observable market pricing,” the fair value of its bitcoin investment was $133 million, $30 million higher than the carrying amount of the investment after impairment charges.
According to FactSet, analysts expected the firm to earn 30 cents per share on revenues of $4.63 billion, but the company earned 22 cents per share after adjusting for certain items. After the market closed on Thursday, shares of the ccompany rose 0.6% to $74.54. There has been a 17% increase in value so far this year, but a 22% decline in the previous year.
