Block’s Q4 Report Reveals a Decline in Bitcoin Yields

Block Inc. has surpassed Industry analysts’ expectations saw its share price rally through after-hours trading. However, the company’s bitcoin (BTC) revenue is declining due to the price drop.

Block’s Cash App is a mobile payments processing application. On October 25, the Bitcoin Lightning Network transaction functionality was enabled for the Cash app. In addition, they offer bitcoin sales to their customers via the app, which brings in money.

Bitcoin sales fell 7% in the fourth quarter

Total bitcoin sales made by Jack Dorsey’s payment app business division, Block Inc. , $1.83 billion in the fourth quarter. This figure represents a decrease of 7% compared to the same period in the previous year.

Block attributed the drop in bitcoin income to the BTC price drop for the year, which was reported in its quarterly and full-year results on February 23. The price of bitcoin is down almost 65% throughout 2022.

Due to lower sales, the Cash App’s total bitcoin profit fell 25% year-over-year, reaching $35 million for the quarter. This was the lowest quarterly total since the company began reporting bitcoin earnings.

Throughout all of 2022, the Cash App generated $7.11 billion in bitcoin revenue and $156 million in total bitcoin revenue, which is down 29% and 28%, respectively, compared to the 2021 figures.

Block’s gross profit increased 40% from Q4 2021 showing revenue

Meanwhile, Block Inc. reported a significant increase in net loss for the quarter, to $114 million. This compares to a loss of $77 million in 2021. Compared to the prior-year period, its adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) rose to $281 million, or a 53% increase. Total revenues during the period amounted to $4.65 billion.

After the release of the results report, Block’s stock after-hours trading led to a significant price increase.

The increase in the company’s total profit, which was up 40% in the fourth quarter over the same period a year earlier and also higher than expert estimates, has been attributed by some analysts to higher revenue.