Block’s Cash App Bitcoin Revenue Drops 25% Year-Over-Year

Jack Dorsey’s payments company Block beat Wall Street expectations on the top line but missed on earnings.

In its latest earnings report for last quarter, Block reported $1.83 billion in Bitcoin revenue from its Cash App business unit in the previous quarter, down 7% from the same time in 2021.

Specifically, the firm’s Cash App business Bitcoin revenue amounted to $35 million, a 25% drop compared to the same period in 2021.

Block, formerly known as Square, is a payments company founded by Twitter co-founder Jack Dorsey that aims to serve small and medium businesses. Cash App—the popular mobile payment service developed by Block—has become a highly popular vehicle for buying and selling Bitcoin.

For the full year of 2022, Block posted $1.66 billion in gross profit, up 40% from a year ago, beating Wall Street expectations of $1.53 billion, per CNBC.

While Bitcoin revenue was relatively consistent compared to the third quarter of 2022, Block attributed the year-over-year decrease to the declining prices of the leading cryptocurrency.

Bitcoin lost about 56% in value in 2022. The market’s largest cryptocurrency is, however, up 44% since the start of the year, currently trading at $23,840, per CoinGecko.

Block’s shares (SQ) closed the Thursday session at $74.15m, up 1.2% over the day, before rising to around $80 the after-hours trading following the release of the earnings report.