Popular mobile payment platform Cash App, developed by Jack Dorsey’s Block Inc., generated $10 billion in bitcoin revenue and $218 million in bitcoin gross profit in 2021. Comparable to last year, bitcoin revenue was up 119% and gross profit increased 124%.
Cash App’s Bitcoin Business
Block Inc., previously Square Inc. released its fourth quarter earnings report on Thursday. The report includes the performance of Cash App, the firm’s mobile payment platform that allows users to trade bitcoin.
It stated that:
Cash App’s fourth quarter 2021 revenue was $1.96Billion and its gross profit was $46M. These numbers are up 14% and 12% respectively.
“Compared to the third quarter of 2021, bitcoin revenue and gross profit increased on a quarter-over-quarter basis, driven primarily by increased volatility in the price of bitcoin, which affected trading activity compared to the prior quarter,” Block detailed, adding:
Cash App generated $10.01 Billion in Bitcoin revenue, and $218 Million of gross bitcoin profit for the entire year 2021. That’s an increase of 119% and 124%, respectively.
Block explained: “Bitcoin revenue is the total sale amount of bitcoin to customers. Bitcoin costs are the total amount of bitcoin that we purchase.” This means Block’s version of bitcoin revenue is simply its trading volume.
Sam Bankman Fried (CEO of cryptocurrency exchange FTX) has urged Block for clarity. He tweeted Thursday: “Hey guys please stop calling this ‘revenue.’ It’s volume.” He clarified that Block had about $2 billion of trading volume and charged about 2% on it, making around $40 million in profit.
Jack Dorsey’s company has some BTC in its balance sheet. “In the fourth quarter of 2020 and first quarter of 2021, we invested $50 million and $170 million, respectively, in bitcoin,” the company noted.
What do you think about Cash App’s bitcoin business? Please leave your comments below.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. It does not constitute an offer, solicitation, or recommendation of selling or buying products or services. Bitcoin.com doesn’t offer investment, tax or legal advice. The author and the company are not responsible for any loss or damage caused by the content or use of any goods, services, or information mentioned in the article.
