Block, formerly known as Square, objavio on Thursday that its Cash App generated $1.73 billion in bitcoin purchases in the first quarter of 2022.
Block Releases Q1 2022 Report
On Thursday, Block Inc, the fintech company led by Twitter founder Jack Dorsey, missed market expectations for first-quarter profit as demand for bitcoin slowed owing to a drop in cryptocurrency prices.
Prema pismo akcionara posted after the market closed, these sales produced $43 million in bitcoin gross profit during that time.
“Cash App je ostvario 1.73 milijarde dolara prihoda od bitcoina i 43 miliona dolara bruto dobiti od bitcoina tokom prvog kvartala 2022. godine, što je pad od 51%, odnosno 42% u odnosu na prethodnu godinu. Na osnovu dvogodišnjeg CAGR-a, prihod od bitcoina i bruto dobit porasli su za 138% i 155%, respektivno”, naveo je Block u svom pismu dioničarima, dodajući:
„Smanjenje prihoda od bitcoina i bruto dobiti u odnosu na prethodnu godinu prvenstveno je vođeno relativnom stabilnošću cijene bitkoina tokom kvartala, što je uticalo na potražnju potrošača i trgovinsku aktivnost u odnosu na period prethodne godine. Prihodi i bruto dobit od bitcoina bili su relativno konzistentni u poređenju sa četvrtim kvartalom 2021. U narednim kvartalima prihod od bitcoina i bruto dobit mogu fluktuirati kao rezultat promjena potražnje kupaca ili tržišne cijene bitcoina.”
In the three months ended March 31, Block’s sales dropped 22% to $3.96 billion. According to IBES statistics from Refinitiv, the company generated an adjusted profit of 18 cents per share, falling short of analysts’ expectations of 21 cents.
BTC/USD se vraća na 36 hiljada dolara. Izvor: TradingView
The firm reported a first-quarter net loss of $204 million, or 38 cents per share, compared to a year-ago quarter net income of $39.0 million, or 8 cents per share.
However, the company’s Cash App, which allows individuals to transmit payments in bitcoin, saw a 26% increase in gross earnings.
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Post-Pandemic Spending Contributed To Surge
Consumers spent extensively on vacation and dining out after two years of the pandemic, despite inflationary pressures, underpinning the company’s solid profitability.
According to Block, more than 10 million Cash App accounts had purchased bitcoin since the program was launched as of the end of the quarter.
In after-hours trading on Thursday, Block’s stock increased roughly 4% to $99.50. On Thursday, shares tumbled more than 10% ahead of the company’s results report, while the Nasdaq sank 5%.
Block's Filings. source: The Block
Cash App made $46 million in gross earnings from bitcoin sales in the fourth quarter of 2021, bringing in $1.96 billion in revenue. When broken down annually, the firm’s bitcoin sales in 2021 were just over $10 billion, totaling $218 million in gross profit.
At 5 p.m. ET, Block will have an investor call to discuss the results.
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Featured image from getty images, chart from TradingView.com
Source: https://bitcoinist.com/block-report-cash-app-bitcoin-sales-comes/