Cash App’s Bitcoin sales revenue declines due to fluctuating Bitcoin prices
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 w…
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.
Block Q4 Bitcoin revenue decreased by 7% year-on-year to 1.83 billion US dollars
Interpretation of the news:
The financial report data released by Block revealed that Bitcoin sales revenue of Cash App for the fourth quarter amounted to $1.83 billion. A decrease of 7% was recorded compared to the previous year, but it was notably higher than the $1.76 billion revenue reported in the third quarter. Bitcoin’s gross profit was $35 million, indicating a 25% decrease from the previous year. According to a letter to shareholders, these declines were driven by the fluctuation in Bitcoin prices.
In 2022, Cash App recorded a revenue of $7.11 billion, a 29% decline from the previous year, with $156 million gross profit, down by 28% from the previous year. Furthermore, in the fourth quarter of the same year, Block accrued an impairment charge of $9 million compared to the Bitcoin investment, along with a full-year impairment loss of $47 million. However, as of December 31, 2022, the fair value of Block’s Bitcoin investment was $133 million, $30 million higher than the book value after deducting impairment charges.
The decline in Bitcoin prices can affect businesses that deal with Bitcoin, such as Cash App, and is also an indication that cryptocurrency is still subject to market volatility. The report shows that factors such as the market’s rising and falling uncertainties can affect investors and impact the company’s revenue. It is possible that many people may have decided to sell their Bitcoin investments when the price dropped, which explains the decline in revenue for the fourth quarter, while the company might still have held Bitcoin investments, resulting in the impairment loss recorded.
In conclusion, the report highlights the importance of businesses that deal with Bitcoin to remain informed about the cryptocurrency’s trends and fluctuations, which could help to make informed investment decisions to better manage the impact on their financial statements.
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