Another major cryptocurrency company published a report at the end of the first quarter of 2023. Led by former Twitter chief Jack Dorsey, Block (formerly known as Square) made $2.16 billion in Bitcoin sales through the Cash App. The operations generated a gross profit of $50 million for the payment company.
Compared to the second quarter of 2022, the company’s performance increased by 25% and 16.3%, respectively.
According to the company, “Year-on-year increases in bitcoin revenue and gross margin were driven by an increase in the number of bitcoins sold to customers and partly offset the decrease in the asset’s market price compared to the same period in the previous year.”
In its latest report, the company also said it did not record an impairment loss on its bitcoin holdings in Q1 after investing a total of $220 million in the first cryptocurrency in Q4 2020 and Q1 2021. Then Block purchased bitcoins for $50 million and $170 million, respectively. As of March 31, the company’s bitcoin assets were valued at $229 million.
Block Inc., focused on digital payments, provides users with financial services and primarily generates income from bitcoin trading through its Cash App. The app is a popular tool for buying and selling bitcoin for younger users and those who prefer to transact on their mobile devices.
With the Cash App, users can link their bank accounts, credit or debit cards to their account and use the app to send or receive payments from other users. The Cash App also offers a number of other features, including the ability to invest in stocks and a debit card that allows users to spend Cash App balances at retail stores and withdraw cash from ATMs.
