• Block Inc. exceeded expectations of industry analysts and experienced a rise in its share price after-hours.
• However, the company’s bitcoin (BTC) revenue is falling due to the price drops.
• The bitcoin sales made by Block Inc.’s Cash App totaled $1.83 billion in Q4, representing a 7% decrease compared to the same period last year.
Block Inc.’s Quarterly Report
Block Inc. reported an increase in its share price through after-hours trading despite a drop in its bitcoin (BTC) revenue due to the declining prices of BTC.
Bitcoin Sales Revenue
Cash App, Block’s mobile payment application, offers Bitcoin sales to its consumers via the app which brings in money. In Q4, Bitcoin sales dropped by 7% totaling $1.83 billion compared to the same period from last year.
Price Drops Affecting Revenue
The decrease in sales has caused Cash App’s Bitcoin gross profit to drop by 25%, coming in at $35 million for the quarter which is the lowest quarterly total since reporting began.
Gross Profit Increases
Despite this, Block Inc.’s gross profit increased by 40%, bringing adjusted profits before interest, tax, depreciation and amortization (EBITDA) up to $281 million or 53%. The aggregate amount of revenue during this period was $4.65 billion.