Cash App Reports Almost $2 Billion In Bitcoin Revenue In Last Quarter Of 2021

February 25, 2022 9:41 pm

Block, the company behind the popular app Cash App, recently reported almost $2 billion in Bitcoin revenue in the last quarter of last year.

The recent financial results indicate how profitable crypto brokerage services could be for companies as these metrics indicated that the company gained $46 million in gross profit which was up over 10% compared to last year.

The company itself also has a fair amount of crypto holdings itself as the current market value of the company’s holdings in Bitcoin currently amount to $371 million.

Cash App was founded by Twitter’s founder Jack Dorsey who is known to be a supporter of the use of crypto and blockchain technologies.

BitcoinMagazine reports:

In a Twitter space that took place on February 16, Jack Dorsey, CEO of Block and ex-CEO of Twitter, had as much to say about Bitcoin as one might imagine.

“For bitcoin — and in all the other projects around it — I think if we’re increasing transparency within the next five to 10 years; if we’re increasing participation, and that participation is globally represented; if we’re providing daily utility, especially in the form of currency, globally — that is success,” he said.

Dorsey’s enthusiasm for Bitcoin has become even more apparent since his departure from Twitter as he has pushed a number of different initiatives at Block related to the peer-to-peer currency.

CoinSpeaker reports:

Total revenue for the fintech and digital payments giant was $4.08 billion, a 29% YoY increase. In addition, it also edged out the analysts’ estimate of $4.04 billion.

Excluding BTC, Block made $2.12 billion in revenue for the quarter, a 51% YoY jump. Furthermore, adjusted EPS stood at $0.27, compared to the consensus estimate of $0.19.

Block did not book an impairment loss on the $220 million worth of BTC listed on its balance sheet between late 2020 and early 2021.

Consequently, the company’s full-year impairment charge remained at $71 million, with a carrying value of $149 million.

At the end of the year, Block’s BTC investment fair value stood at $371 million, surpassing the carrying value by $222 million.

One impressive thing to note as that this growth was even experienced during a time when the crypto market had declined from its peak in 2021 and was in an overall bearish market.

Financial analysts expect new records to be hit once again when the market rebounds and the crypto market cap continues its upward climb.

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