Block’s Financial Report Reveals Decrement in Bitcoin Sales Revenue but Increase in Gross Profit

02/24/2023 22:47 • NFT Newsflash • 147 views

According to reports, the financial report data released by the payment company Block showed that the Bitcoin sales revenue of Cash App in the fourth quarter was $1.83 billion, down 7% year on year, but higher than the $1.76 billion reported in the third quarter. Bitcoin’s gross profit was $35 million, down 25% year on year. In a letter to shareholders, Block said that the year-on-year decline in Bitcoin revenue and gross profit was caused by the decline in Bitcoin price. At the same time, the Bitcoin revenue of Cash App in 2022 was $7.11 billion and the gross profit was $156 million, down 29% and 28% respectively from the previous year. In addition, in the fourth quarter, Block accrued an impairment charge of US $9 million compared to the Bitcoin investment, and the impairment loss of Bitcoin in the whole year of 2022 was US $47 million. The company pointed out that as of December 31, the fair value of Block Bitcoin investment was $133 million, which was $30 million higher than the book value of the investment after deducting impairment charges.

Block Q4 Bitcoin revenue decreased by 7% year-on-year to 1.83 billion US dollars

Interpret the above information:

Block, a payment company, recently released its financial report data, revealing that the Bitcoin sales of Cash App in the fourth quarter of 2022 amounted to $1.83 billion. This is down 7% year on year, but higher than the $1.76 billion reported in the third quarter. Although this data initially appears to be negative, a closer look will explain the reasons behind it.

It was further reported that Bitcoin’s gross profit was $35 million, which is down 25% year on year. In a letter addressed to shareholders, Block attributed the decrease to the decline in Bitcoin price on the market. The decline in Bitcoin revenue and gross profit was caused by the significant decline in Bitcoin’s price in recent years.

Moreover, Bitcoin revenue of Cash App in 2022 was $7.11 billion, signifying a 29% reduction in revenue from the previous year. The gross profit this year was $156 million, which is a 28% decrement from the previous year. Unfortunately, in the fourth quarter of 2022, Block accrued an impairment charge of $9 million, as compared to the Bitcoin investment. The impairment loss of Bitcoin in the whole year of 2022 was $47 million. Block reported a fair value of $133 million for its Bitcoin investment as of December 31, which was $30 million higher than the book value of the investment after deducting impairment charges.

In summary, Bitcoin sales revenue decreased, but there was an increase in gross profit. The decrease in Bitcoin revenue and gross profit was attributed to the decline in Bitcoin price. Despite the difficult year for Bitcoin, Block’s Bitcoin investment has a fair value of $133 million. It is evident that the company is optimistic about Bitcoin-related investments.

In conclusion, the report highlights the vulnerability of the Bitcoin market and how this is affecting many businesses reliant on the digital currency. Title: Block’s Financial Report Reveals Decrement in Bitcoin Sales Revenue but Increase in Gross Profit.

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