Jack Dorsey’s payment firm, Block, surpassed Wall Street’s revenue expectations but fell short of earnings estimates.
Block’s latest earnings report revealed that its Cash App business unit generated USD 1.83 billion in Bitcoin revenue in the previous quarter, marking a 7% decrease from the same period in 2021. Within this, the Cash App business saw a decline in Bitcoin revenue of 25%, with the total amounting to USD 35 million for the quarter.
Founded by Twitter co-founder Jack Dorsey, Block (formerly known as Square) is a payments company that focuses on serving small and medium-sized businesses. One of Block’s most popular offerings is Cash App, a mobile payment service that has gained significant traction as a platform for buying and selling Bitcoin.
Block reported a 40% increase in gross profit, amounting to USD 1.66 billion for the full year of 2022, beating Wall Street’s expectations, as per CNBC. The company’s Bitcoin revenue remained consistent with the third quarter of 2022, but it experienced a year-over-year decline, which Block attributed to the decreasing value of the leading cryptocurrency.
According to CoinGecko, Bitcoin experienced a decline of approximately 56% in value throughout 2022. However, the leading cryptocurrency has rebounded this year, currently trading at USD 23,840 and boasting a 44% increase since the start of the year. On Thursday, Block’s shares (SQ) closed the session at USD 74.15m, rising by 1.2% during the day. The release of the earnings report caused the stock to surge to around USD 80 in after-hours trading.