The company’s Cash App division earned $35 million in Bitcoin, down 25%.
In 2022, Block’s annual gross profit was $1.66 billion, up 40% from the previous year.
The revenue for Jack Dorsey’s payment processing firm, Block, exceeded Wall Street’s forecasts, but the bottom line fell short. Block reported income of $1.83 billion in Bitcoin from its Cash App business unit in the prior quarter, down 7% year over year as compared to the same period in 2021. More specifically, the company’s Cash App division earned $35 million in Bitcoin, down 25% year-over-year.
Formerly known as Square, Block is a payment processing firm started by Jack Dorsey, co-founder of Twitter, with the intention of helping small and medium-sized enterprises. It’s no secret that Bitcoin transactions have exploded in popularity on Cash App, a mobile payment service established by Block.
Bitcoin’s Dropping Price in 2022
In 2022, Block’s annual gross profit was $1.66 billion, up 40% from the previous year and more than the $1.53 billion predicted by Wall Street analysts, as reported by CNBC. When comparing the third quarter of 2022, Bitcoin income remained reasonably stable. Nonetheless, Block explained the annual decline by saying that Bitcoin’s dropping values were to blame.
In 2022, bitcoin was down roughly 56%. Nonetheless, the market leader in cryptocurrency is up 44% since the beginning of the year, trading at $23,144 as of the writing of this article, according to CoinGecko. After the publication of the earnings report, Block’s (SQ) stock jumped in after-hours trading to nearly $80 from its closing price of $74.15m on Thursday, an increase of 1.2% for the day.
The crypto sector has been going through hard times with the U.S. SEC clamping down on regulation through enforcement measures.