Block Q4 Bitcoin revenue decreased by 7% year-on-year to 1.83 billion US dollars

According to reports, the financial report data released by the payment company Block showed that the Bitcoin sales revenue of Cash App in the fourth quarter was $1.83 billion, down 7% year on year, but higher than the $1.76 billion reported in the third quarter. Bitcoin’s gross profit was $35 million, down 25% year on year. In a letter to shareholders, Block said that the year-on-year decline in Bitcoin revenue and gross profit was caused by the decline in Bitcoin price. At the same time, the Bitcoin revenue of Cash App in 2022 was $7.11 billion and the gross profit was $156 million, down 29% and 28% respectively from the previous year. In addition, in the fourth quarter, Block accrued an impairment charge of US $9 million compared to the Bitcoin investment, and the impairment loss of Bitcoin in the whole year of 2022 was US $47 million. The company pointed out that as of December 31, the fair value of Block Bitcoin investment was $133 million, which was $30 million higher than the book value of the investment after deducting impairment charges.

Interpretation of this information:

The financial report data released by the payment company, Block, reveals that Cash App’s Bitcoin sales revenue in the fourth quarter was $1.83 billion, a 7% decrease compared to the previous year. However, it is still higher than the third quarter’s $1.76 billion. The gross profit for Bitcoin was $35 million, a 25% decrease compared to the previous year. Block attributes the decline in revenue and profit to the decline in Bitcoin price. The company also reported a $9 million impairment charge in the fourth quarter, and an impairment loss of $47 million throughout 2022. Despite these losses, the fair value of Block Bitcoin investment was $133 million as of December 31, which was $30 million higher than the investment’s book value.