In Q1 2022, Block Generated $1.73 billion In Bitcoin Sales via Cash App: Reason Behind Yearly Drop

Block reported a Bitcoin sale of $1.73 billion via Cash App during the first quarter of 2022 on Thursday.

During the same period, the firm also generated around $43 million worth of sales in Bitcoin gross profit, according to the shareholder letter published after the close of the market.

The total net revenue, as revealed by Block, had an increase of 22% year-over-year, totaling $3.96 billion.

On Thursday, formerly Square, Block revealed that it did a Bitcoin sale of around $1.73 billion in the first quarter of 2022 using Cash App.

According to the shareholder letter published after the market closing, in that period, $43 million worth of sales were generated in Bitcoin’s gross profit.

During the first quarter of 2022, Cash App made $1.73 billion and $43 million in Bitcoin revenue and gross profit, respectively. Bitcoin revenue dropped about 51%, while Bitcoin is down 42% year over year. Bitcoin revenue and Gross profit rose by 138% and 155%, respectively, on a two-year CAGR basis, per a shareholder letter shared by Block.

It further noted that the relative stability in Bitcoin’s price is what majorly drives the year-over-year drop in both Bitcoin revenue and gross profit, whose effect can be experienced in consumer demand and trading activity in comparison to the prior-year period.

Meanwhile, in comparison to the fourth quarter of 2021, Bitcoin revenue and gross profit had been recorded to be consistent. However, there are chances that both the Bitcoin revenue and gross profit can experience in fluctuate as a consequence of the market price of Bitcoin or consumer demand.

During its first quarter, Cash App generated $2.46 billion of revenue and $624 million in gross profit.

All in all, the total net revenue of Block experienced a rise of 22% year-over-year, amounting to $3.96 billion.

Cash App generated $46 million in bitcoin gross profits after its bitcoin sales, worth $1.96 billion during the fourth quarter of 2021. Conducting annually, the Bitcoin sales of the firm were just over $10 billion in 2021, indicating a gross profit of $218 million in that category.

Block will be conducting an investor call at 5 p.m. ET to discuss the results.