Block’s Q422 Sees Strong Gains from CashApp and Square Despite Bitcoin Losses

Block, the online payments giant, announced a solid increase in sales and gross profit in the fourth quarter, as its mainstays, digital wallet CashApp and commercial payments platform Square, saw significant gains.


The company’s gross profit in the fourth quarter of 2022 was $1.66 billion, up over 40% from roughly $1.2 billion in the fourth quarter of 2021. Revenue increased to $4.65 billion from $4.1 billion in the same quarter of 2021.

CashApp and Square drove the majority of those improvements, with CashApp posting a startling 64% increase in year-over-year gross profit and Square posting a 22% increase.

The company announced quarterly earnings per share of 22 cents, compared to a FactSet polled estimate of 30 cents per share.

Block, on the other hand, outperformed expectations in terms of revenue and gross profit.

Going ahead to 2023 and beyond, we will prioritize speed, agility, and accountability while balancing growth and efficiency,” Block CEO Jack Dorsey and CFO Amrita Ahuja wrote in a letter to shareholders.

The outlook for the company’s foray into Bitcoin, on the other hand, was bleak.

Block invested $220 million in Bitcoin in 2020 and 2021, but by the end of 2022, the company’s Bitcoin assets were worth only $133 million.

CashApp and the Future

Its Bitcoin trading on CashApp has also fallen. CashApp’s overall fourth-quarter revenue from Bitcoin sales was $1.83 billion, down from $1.96 billion in the same quarter in 2021, and its year-over-year cryptocurrency gross profits fell from around $46 million to $35 million, a minuscule fraction of Block’s entire gross profit.

Dorsey, a well-known Bitcoin evangelist, revealed in 2018 that CashApp users would be able to buy and sell Bitcoin using the digital wallet. And, more than two years later, the company, formerly known as Square, made big cryptocurrency investments.

Dorsey then said that Block would be changing its name to reflect his company’s commitment to cryptocurrency.

He has continued to bet big on Bitcoin since then.

Dorsey announced the formation of TBD, a Block subsidiary that quickly published a white paper outlining intentions for the development of a decentralized Bitcoin trading exchange.

Block, the online payments giant, is making moves in the world of Bitcoin. Following the closure of FTX, Block has announced the development of a new wallet that will allow its customers to retain Bitcoin themselves rather than having tokens managed by third parties.

Additionally, the company has recently invested in a Bitcoin mining company that is working towards offering inexpensive energy to Kenya and Malawi.

As the company’s outlook for its foray into Bitcoin appears bleak, it seems that Block is continuing to bet big on cryptocurrency and its potential for growth and innovation in the coming years.

These recent developments are part of Block’s larger vision for the future, which prioritizes speed, agility, and accountability while balancing growth and efficiency.

With CashApp and Square driving the majority of the company’s sales and gross profit in the fourth quarter, it seems that Block is focused on diversifying its portfolio and expanding into new areas of opportunity.

As the world of online payments and cryptocurrencies continues to evolve, it will be interesting to see what other moves Block makes in the coming years to stay ahead of the curve and continue its impressive growth trajectory.

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