Fourth-quarter reports of Block
Cash App, a prominent mobile payment application built by Block (previously Square), has become a popular way to buy Bitcoin. According to today’s financial announcement, the firm earned $1.96 billion in Bitcoin revenue in the fourth quarter of 2021.
This amount is taken from page 10 of the earnings report, which shows that Block earned $4.08 billion in net sales in Q4. According to the firm, their sales was $2.12 billion “excluding Bitcoin.”
In 2021, Cash App, a popular mobile payment app established by Jack Dorsey’s Block Inc., produced $10 billion in bitcoin sales and $218 million in bitcoin gross profit. Bitcoin sales jumped 119 percent over the previous year, while gross profit increased 124 percent.
Cash App’s Bitcoin Business Block Inc., previously Square Inc., reported profits for the fourth quarter of 2021 on Thursday. The success of Cash App, the firm’s mobile payment platform that allows customers to trade bitcoin, is included in the report.
Cash App generated $1.96 billion of bitcoin revenue and $46 million of bitcoin gross profit during the fourth quarter of 2021, up 12% and 14% year over year, respectively.
Compared to the third quarter of 2021, bitcoin revenue and gross profit increased on a quarter-over-quarter basis, driven primarily by increased volatility in the price of bitcoin, which affected trading activity compared to the prior quarter,” Block added:
For the full year of 2021, Cash App generated $10.01 billion of bitcoin revenue and $218 million of bitcoin gross profit, up 119% and 124% year over year, respectively.
“Bitcoin income is the entire amount of bitcoin sold to consumers,” Block stated. The entire amount of bitcoin purchased is referred to as the bitcoin cost.” As a result, Block’s interpretation of bitcoin earnings is just its trading volume.
Sam Bankman-Fried, CEO of bitcoin exchange FTX, has asked Block to clear the air. “Hey people, please stop calling this revenue,'” he tweeted on Thursday. It’s the loudness.” He emphasised that Block had roughly $2 billion in trade activity and charged about 2% on it, profiting about $40 million.
The corporation, managed by Jack Dorsey, has some BTC on its financial sheet. “In the fourth quarter of 2020 and the first quarter of 2021, we invested $50 million and $170 million in bitcoin, respectively,” the business said.