Block Inc Reports a Better Than Expected $1.83B BTC Revenue in Q4

Much to the disappointment of analysts, Jack Dorsey’s payment company Block Inc. performed better than expected in terms of its Bitcoin (BTC) revenue. The American multinational conglomerate recorded Bitcoin revenue worth up to $1.83 billion from its Cash App arm in Q4. While this value seems like a lot, it is a 7% fall from the value at this same time the previous year.

In the same quarter, the Block Inc. Cash App secured $35 million in BTC gross profit representing a 25% decrease from the other year. This figure was also lower than the $37 million generated in Q3. For the full year, the Cash App generated $7.11 billion in BTC revenue down 29% year-on-year, while the other gross profit was around $156 million, a 28% drop year-on-year.

Also, Block Inc. noted a net loss of $114 million in Q4 2022  unlike in 2021 when the net loss was only $77 million. The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) saw a 53% jump to $281 million.

Block Inc Attributes Decline to BTC Price Plunge

According to Block Inc.’s published shareholder’s letter, both declines in Bitcoin revenue and its gross profit were attributed to a drastic fall in the market price of the leading digital currency. While there’s no certainty to this claim, it is, however, noteworthy that Bitcoin plunged approximately 65% throughout last year. 

The last straw of its plummeting trend hit in the wave of the implosion of the FTX Derivatives Exchange. During that time, investment giant JPMorgan predicted that the price of BTC would go as low as $13,000 as a result of the FTX liquidity crunch but it never went below $15,000 which was more than 75% from its value in November 2021.

The former Chief Executive Officer (CEO) of the Bahamian-headquartered cryptocurrency exchange Sam Bankman-Fried allegedly redirected customers’ funds to finance his other trading firm Alameda Research. He was therefore accused of mishandling customers’ funds in an attempt to commit fraud. Bankman-Fried vehemently denied any connection to the matter.

In a later court appearance in the United States, the young billionaire pleaded not guilty to all of the eight charges levied against him.