Blocks Cash App sold $2.16 billion worth of Bitcoin in Q1

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Payments firm Jack Dorseys Block generated $50 million in Bitcoin earnings in the first quarter of 2023, up 16% from the same period in 2022, the company said in a letter to shareholders.

In its latest quarterly earnings report, Block announced the sale of Bitcoin worth $2.16 billion to its customers through the Cash app in the previous quarter, up 25% from year-over-year compared to $1.83 billion in the first quarter of 2022.

While Bitcoin’s revenue was relatively constant from the fourth quarter of 2022, when it generated around $35 million, Block attributed the year-over-year increase to soaring prices for the major. cryptocurrency.

The San Francisco company points out that it only takes a small margin to sell bitcoins to customers on Cash App, Blocks the popular payment service.

According to the company, the year-over-year increase in Bitcoin revenue and gross profit was driven by an increase in the amount of Bitcoin sold to customers, partially offset by a decline in the market price of Bitcoin by compared to the period of the previous year. .

Overall, Cash Apps’ total earnings, including crypto products, were $931 million, a 49% year-over-year increase.

Square Founder and CEO, Jack Dorsey, one of bitcoin’s leading proponents, has repeatedly shared his enthusiasm for digital currencies, saying it provides the opportunity for more people to access the financial system. He went further than most in calling bitcoin a transformational technology and it will be the single global currency in 10 years.

Cash App made headlines in late 2022 when it added a Lightning Network layer-2 payment protocol to help users transact with Bitcoin, nearly three years after it originally announced it would.

The feature rolled out secretly early last year to a handful of users. At the time, the company did not issue any official notice, but some Cash App users reported that the Lightning feature was already available on the platform. They shared screenshots on Twitter indicating that they were able to use feature transfer or withdraw Bitcoin in seconds with much lower fees.

With the official launch to a wider user base, Cash App customers can send or receive payments of up to $999 in Bitcoin every seven days using the Lightning Network.

San Francisco-based Block (formerly Square) jumped on the cryptocurrency bandwagon in 2019 when it rolled out Bitcoin trading to its Cash App customers. Additionally, it holds a so-called BitLicense from the New York State Department of Financial Services (NYDFS) and now operates legally as a money transmitter and digital currency exchange. Block also owns TBD54566975, a blockchain aggregator for decentralized crypto exchanges.

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