• Blockchain Inc. exceeded expectations with a rise in its share price through after-hours trading; however, the company’s bitcoin revenue decreased by 7% in Q4 due to the decline in BTC prices during the year.
• Cash App offered Bitcoin sales to its customers via the app, resulting in a 25% decrease in Bitcoin gross profit for the quarter when compared to Q4 of 2021.
• Block’s adjusted profits before interest, tax, depreciation, and amortization (EBITDA) rose 53%, leading to a significant increase in share price after-hours trading following their results report.
Blockchain Inc.’s Fourth Quarter Results Revealed
Block Inc., Jack Dorsey’s payment firm, reported its quarterly and full-year results on February 23rd that showed a drop in Bitcoin (BTC) revenue due to decreasing prices throughout 2022. Despite this decrease, the company still experienced an increase in its share price through after-hours trading as it exceeded expectations.
Bitcoin Sales Dropping
The bitcoin sales made by Block Inc.’s Cash App business totaled $1.83 billion for the fourth quarter—a 7% decrease compared to the same period of 2021. This was attributed to BTC’s 65% decline over 2022 and resulted with Cash App’s Bitcoin gross profit being reduced by 25%. Despite this decrease for the year overall, Bitcoin revenue totaled $7.11 billion and gross profit was at $156 million—both 28% decreases from 2021 figures.
Gross Profit Increases
On a brighter note, Block reported an increased annual net loss of $114 million compared to 2021’s $77 million loss but also had higher adjusted profits before interest, tax, depreciation and amortization (EBITDA) at $281 million—a 40% rise from Q4 of last year above analyst estimates. The aggregate amount of revenue during this period was also up at $4.65 billion.
Lightning Network Enabled on Cash App
As part of their efforts to bring more people into cryptocurrency adoption, Block enabled Lightning Network transactions on Oct 25th via their Cash App platform which allows mobile payments processing as well as buying and selling Bitcoin within the app itself.
Share Price Increase Following Report Release
After releasing their results report following these figures from Q4 2022, Block Inc.’s shares experienced a significant price increase due largely to their high gross profit numbers that topped experts’ predictions for that quarter alone according to some analysts who are keeping track of them now