• Block Inc. exceeded industry expectations and experienced a rise in its share price through after-hours trading, but the company’s bitcoin (BTC) revenue is falling due to the price drops.
• Cash App’s bitcoin sales totaled $1.83 billion in Q4, representing a 7% decrease compared to the same period the previous year.
• After releasing their results report, Block’s shares experienced a significant price increase due to an increase in their gross profit of 40%, which was higher than expert estimates.

Block Exceeds Expectations Despite Bitcoin Revenue Drop

Decrease in Bitcoin Sales

Cash App is an application for processing mobile phone payments and offers bitcoin sales to its consumers via the app, which brings in money. However, Block Inc.’s bitcoin sales made by Cash App totaled $1.83 billion in the fourth quarter, representing a 7% decrease compared to the same period the previous year due to BTC price drops throughout 2022. This resulted in a 25% decrease in Cash App’s bitcoin gross profit for this quarter compared to 2021 figures and was reported as Block’s lowest quarterly total since they began reporting earnings from BTC sales.

Increase In Earnings

Despite this decline, revenues increased significantly with an aggregate amount of revenue during this period being $4.65 billion and resulting in a 53% rise on adjusted profits before interest, tax, depreciation, and amortization (EBITDA). These figures exceeded industry analysts‘ expectations leading to after-hours trading of Blocks‘ shares experiencing a significant rise in their prices due to these improved earnings reports.

Impact Of Bitcoin Price Drops

The reduction of BTC income can be attributed mainly to its drop throughout 2020 with it decreasing by nearly 65%. As such all measures related directly or indirectly with transactions made using cryptocurrency were affected such as sales made via Bitcoin Lightning Network enabled on Cash App back on Oct 25th as well as other services offered by Block Inc.. The impact was such that even though they had increased overall revenue they still suffered losses reaching up to $114 million at end of Q4 compared to 2021’s loss of $77 million during same period previously.


Overall despite these losses there were still positive results seen from Block Inc., particularly when looking at their share prices rising after hours trading following release of their reports indicating investors are still confident about company’s future performance given current market conditions where BTC prices have been volatile throughout last year .


Block Inc.’s experience shows how important it is for companies dealing with cryptocurrencies take into account market volatility when planning out strategies for success as seen through their ability remain profitable despite dropping BTC income since Q4 of 2021 .