Fintech firm Block (SQ) reported $1.83 billion in bitcoin (BTC) revenue in its Cash App unit during the fourth quarter, down 7% year-over-year but higher than the $1.76 billion reported in the third quarter. Block reports the total sale amount of bitcoin to customers as revenue.
Cash App generated $35 million in bitcoin gross profit in the quarter, down 25% from the year earlier and slightly less than the $37 million reported in the third quarter.
The year-over-year decline in bitcoin revenue and gross profit was driven by the fall in the price of bitcoin, Block said in its quarterly shareholder letter Thursday.
For the full year of 2022, Cash App generated $7.11 billion of bitcoin revenue and $156 million of bitcoin gross profit, down 29% and 28%, respectively, from the previous year.
Block recorded an impairment charge of $9 million on its bitcoin investment during the fourth quarter, compared to $2 million in the third quarter. For the full year of 2022, Block recognized a bitcoin impairment loss of $47 million.
As of Dec. 31, the fair value of Block's bitcoin investment was $133 million based on “observable market prices,” which was $30 million greater than the carrying value of the investment after impairment charges, the company noted.
Overall, the company reported adjusted earnings per share of $0.22 on $4.65 billion in revenues, compared to analyst estimates of EPS of $0.30 and revenue of $4.63 billion, according to FactSet.
Shares of Block were up 0.6% in post-market trading Thursday to $74.54. Shares are up 17% this year but down 22% over the past year.
UPDATE (Feb. 23 21:48 UTC): Added company's overall results.
