Cash App Bitcoin revenue tops $2 billion in the first quarter
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Blockās Q1 earnings report reveals a 25% year-on-year increase in Bitcoin revenue from the fintech firmās flagship product Cash App.
Fintech firm Block, owned by Twitter founder Jack Dorsey, has reported a staggering $2.16 billion in Bitcoin (BTC) revenue on its bellwether product Cash App in Q1.
According to a shareholder letter announcing its Q1, 2023 earnings, Block (NYSE:SQ) reported that its Bitcoin revenue ā which counts BTC revenue as total sales of the cryptocurrency to customers ā was up 18% from $1.83 billion in Q4 and 25% from Q1 2022.
Our Q1 earnings are now available. $SQ https://t.co/oGcnRuzFb3
ā Block Investor Relations (@BlockIR) May 4, 2023
Cashappās total profits reached over $931 million in the first quarter of 2023, marking a 49% increase year-over-year. Notably, Cash Appās profit paled compared to the companyās gross profit, which came in at $1.71 billion. Block also owns the popular business payment service Square, which reported a slight (3.8%) decline in profits from the fourth quarter of 2022.
According to the shareholder letter, the multi-billion-dollar Bitcoin revenues were driven by āan increase in the quantity of Bitcoin sold to customers,ā and were āpartially offsetā by a decrease in the market price of Bitcoin when compared to the same time frame in 2022.
The fintech firm also reported an earning per share of 40 cents, beating analyst expectations of 35 cents per share by 14%, with its first-quarter revenue rising 26% year-on-year.
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Speaking to investors in the earnings conference call, Block CEO Jack Dorsey, identified both artificial intelligence and āopen protocolsā as technologies that would aid the company in proactively responding to the āsignificant shiftsā in the global financial system, citing continued United States bank failures and de-dollarization as the primary culprits.
The equities market took kindly to Blockās earnings filings. The fintech firmās share price briefly surged 5% to $63.50 in after-hours trading, before settling down to a 2.5% gain at the time of publication.
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This uptick marked the first instance of relief from a steady decline in Blockās share price, which suffered a significant 25% hit following the release of a scathing report penned by famed short sellers Hindenburg Research.
On March 23, Hindenburg slammed Block for āsystematically taking advantage of the demographics it claims to be helping,ā and declared that Blockās success with Cash App only hinged on a āwillingness to facilitate fraud against consumers and the government.ā
āHindenburg is known for these types of attacks, which are designed solely to allow short sellers to profit from a declined stock price,ā wrote Block in response to Hindenburgās allegations. āWe have reviewed the full report in the context of our own data and believe itās designed to deceive and confuse investors.ā
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