• Block Inc. experienced a rise in share price after releasing its Q4 report, however the company’s bitcoin revenue decreased due to the decline in BTC price throughout 2022.
• The Bitcoin sales made by Block Inc.’s Cash App business totaled $1.83 billion for Q4, a 7% decrease year-on-year. This resulted in a 25% decline in bitcoin gross profit for the quarter and an overall 29% drop for the entire year of 2022.
• Despite the decline in bitcoin income, Block reported an increased net loss of $114 million and adjusted EBITDA of $281 million, representing a 53% rise from 2021’s Q4.
Block’s Q4 Report Reveals Drop In Bitcoin Revenue
Block Inc. exceeded expectations of industry analysts and experienced a rise in its share price through after-hours trading. However, the company’s bitcoin (BTC) revenue is falling due to the price drops.
Bitcoin Sales Dropped By 7% In Q4
The bitcoin sales made by Block Inc.’s Cash App business section totaled $1.83 billion during Q4 – representing a 7% decrease from the same period last year. This also caused a 25% decline in bitcoin gross profit for this quarter and an overall 29% drop for 2022 compared to 2021’s figures.
Functionality For Transactions Made Via The Bitcoin Lightning Network Enabled To Cash App
On Oct 25th, functionality was enabled on Cash App to process mobile phone payments via the Bitcoin Lightning Network; it offers bitcoin sales to its consumers via app, which brings money into the company as well as other services promoting cryptocurrency transactions and investments with cryptocurrencies like Bitcoin BCH & Ethereum ETH).
Q4 Net Loss Increased To $114 Million
Despite decreases in bitcoin income, Block reported an increased net loss of $114 million for this period along with an adjusted EBITDA of $281 million – representing a 53% rise from 2021’s fourth quarter results.
After-Hours Trading Resulted In Significant Price Increase
After releasing results report, after-hours trading of Block’s shares resulted in significant price increase due to surge in revenue attributed by some analysts to increase in gross profit which was up 40%.