Block, owned by Twitter creator Jack Dorsey, earned $2.16 billion in Bitcoin income in the first quarter through its flagship product, Cash App.
Block’s Q1 earnings report shows a 25% growth in Bitcoin revenue from the fintech firm’s flagship product Cash App, year on year.
In a letter to shareholders about its Q1 2023 earnings, the platform shared that Cash App Bitcoin income, the total amount of cryptocurrency sold to consumers, was up 18% from $1.83 billion in Q4 and 25% from Q1 2022.
Furthermore, Cash App made more than $931 million in Q1 of 2023, a 49% increase from last year. Cash App’s gains, however, still do not meet the company’s gross profit, which was $1.71 billion.
Another noteworthy factor in the fluctuating profit of Block is the decrease in the popular business payment service Square that Block owns. The profit revenue of Square saw a 3.8% in the fourth quarter of 2022.
What Led To Block’s Market Stability?
According to the shareholder letter, compared to the same period in 2022, a drop in Bitcoin market price “partially offset” multi-billion dollar Bitcoin sales, driven by “an increase in the quantity of Bitcoin sold to customers.”
In his remarks to investors during the conference call, Block CEO Jack Dorsey emphasized “open protocols” and artificial intelligence as technology that would help the company respond proactively to “significant shifts” in the global financial system. He singled out de-dollarization and continuous bank failures in the United States as the key culprits.
The stock market reacted positively to Block’s earnings announcements. The fintech company’s share price surged 5% in after-hours trading to $63.50 before leveling off at a 2.5% gain this week.
This was the first time that Block’s share price stopped falling steadily. It had decreased steadily since a bad report by the well-known short seller Hindenburg Research dropped it by 25%.
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