• Block Inc.’s Q4 report reveals a decrease in bitcoin revenue, with sales dropping by 7%.
• The company attributed the reduction to the decline in BTC price throughout 2022.
• Despite this, Block Inc.’s share prices rose through after-hours trading due to an increased gross profit of 40% from 2021’s Q4.
Block Inc. Reports Decrease in Bitcoin Revenue
Block Inc. released their quarterly and full-year results on Feb. 23, showing a 7% drop in bitcoin (BTC) sales for the fourth quarter of 2022 compared to the same period the previous year. This was attributed to the 65% decrease in BTC/USD price throughout that year. Despite this, Cash App’s bitcoin gross profit decreased by 25%, coming in at $35 million for the quarter – its lowest total since reporting began.
Full Year Results
For all of 2022, Cash App made $7.11 billion in bitcoin revenue and $156 million in bitcoin gross profit – representing decreases of 29% and 28%, respectively, when compared to 2021’s figures. Meanwhile, Block Inc.’s net loss reached $114 million while its adjusted profits before interest, tax, depreciation and amortization (EBITDA) rose to $281 million or a 53% rise – leading to an increase in share prices through after-hours trading due to a surge in revenue and higher than expected adjusted profits before interest etc..
Lightning Network Functionality Enabled
On Oct 25th functionality for transactions made via Bitcoin Lightning Network was enabled to Cash App businesses section of Jack Dorsey’s payment firm Block Inc., enabling mobile phone payments within it. It also offers bitcoin sales via its app which brings money into the company but has since seen a steady decline as mentioned earlier due to declining BTC prices during that period of time.
Decline of Bitcoin Prices In 2022
Bitcoin’s price dropped by nearly 65% throughout 2022 causing the decrease in BTC sales made by Block Inc.’s Cash App business section totaling $1.83 billion for Q4 alone compared with what it earned during that same period last year according to their report which appears consistent with other industry reports suggesting similar drops during that period within their sector as well (Source: CoinMarketCap).
Conclusion
Despite showing a decrease overall in blockchain related income due largely attributed to declines within cryptocurrency markets throughout 2022; Block Inc’s share prices have risen significantly following its release of financial results indicating an increase across several areas including gross profits for Q4 which saw a 40% jump from those reported last year indicating potential growth despite declining revenues from cryptocurrencies like Bitcoin during that same time frame as well as enabling new functionalities such as transactions via Bitcoin Lightning Network which could potentially lead them towards future success given proper management and adaptation strategies moving forward .