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Fintech Block (SQ) reported $2.16 billion in bitcoin revenue in its Cash App unit during the first quarter, up 18% from $1.83 billion in the fourth quarter and up by 25% compared to the first quarter of 2022, the company announced in its letter to shareholders on Thursday. Block reports the total amount of bitcoin sales to customers as revenue.
Cash App generated $50 million in gross profit in bitcoins in the first quarter, up 43% from the fourth quarter and 16% year-on-year. The company as a whole reported gross profit of $770 million in the first quarter, up 16% year-over-year.
Thanks to a rise in the price of bitcoin, the company did not recognize any impairment on its bitcoin holdings in the first quarter. Block announced a $9 million fourth-quarter impairment charge on its bitcoin investment and a $47 million impairment for the whole of 2022.
As of March 31, the fair value of Block’s bitcoin holdings was $229 million compared to a book value of $126 million on the balance sheet. Block’s initial purchase price on his bitcoin holdings was $220 million.
Overall, the company reported first-quarter revenue of $5 billion, beating estimates of $390 million; non-GAAP earnings per share of 40 cents beat expectations by 6 cents.
The shares are 2.4% higher in after-hours trading.
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Sources 2/ https://www.coindesk.com/business/2023/05/04/blocks-q1-bitcoin-revenue-rises-18-from-q4-gains-25-from-a-year-ago/?outputType=amp The mention sources can contact us to remove/changing this article |
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