Cash Apps' BTC revenue increased by 18% compared to Q4 of 2022.
Block, the fintech giant led by Twitter's founder Jack Dorsey, recently disclosed a mind-blowing $2.16 billion in Bitcoin (BTC) revenue through its flagship product, Cash App, in the first quarter.
The staggering figure was shared in a shareholder letter revealing the company's Q1 2023 earnings.
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The Bitcoin revenue, which represents the total cryptocurrency sales to customers, witnessed an 18% increase from the previous quarter's $1.83 billion and a 25% boost from Q1 2022.
The first quarter of 2023 saw Cash App's total profits skyrocket to over $931 million, a striking 49% year-over-year growth. Interestingly, the app's profit was overshadowed by the company's gross profit, which reached a massive $1.71 billion.
Block is also the proud owner of the widely-used business payment service, Square, which experienced a slight 3.8% profit decline from Q4 2022.
The multi-billion-dollar Bitcoin revenues were primarily fueled by "an increase in the quantity of Bitcoin sold to customers," as per the shareholder letter. It is worth noting that in October, Cash App added support to Bitcoin Lightning Network. However, this growth was partially counterbalanced by a dip in Bitcoin's market price compared to the same period in 2022.
Block exceeded analyst expectations by reporting earnings per share of 40 cents, a 14% increase over the predicted 35 cents per share. The company's first-quarter revenue also climbed 26% year-on-year.
During an earnings conference call with investors, Block CEO Jack Dorsey pinpointed artificial intelligence and "open protocols" as crucial technologies that would enable the company to proactively adapt to the "significant shifts" in the global financial system. He cited ongoing United States bank failures and de-dollarization as the primary factors behind these changes.
The stock market reacted positively to Block's earnings report, as the fintech firm's share price briefly soared 5% to $63.50 in after-hours trading. It eventually stabilized, securing a 2.5% gain at the time of publication.
Block's Cash App has demonstrated remarkable success in the first quarter, showcasing the company's potential in the ever-evolving fintech landscape.
