The Block ecosystem of payment solutions performed well in Q1, earning $1.29 billion in total profits, with Bitcoin accounting for $43 million despite the fact that the Bitcoin price dropped.
In 2022, Block, the pro-Bitcoin (BTC) parent firm that includes Cash App, Square, and Afterpay, continued to flourish. Gross profits are up 34% year over year in the first quarter of 2022, according to the company’s shareholder letter.
The payment firm’s operating expenditures increased by 70% year over year to $1.52 billion in the first quarter of 2022, while gross earnings increased to $1.29 billion. According to the company, the acquisition of Afterpay, a buy now pay later business, may be to blame for the rising prices.
From January through March 2022, overall net Block revenues were $3.96 billion, down 22% from the previous year. The dip was “driven by a decrease in Bitcoin revenue,” according to the organisation.
Although the numbers are less encouraging than the previous quarter, Cash App, Block’s Bitcoin retail outlet as well as a mobile payment service, continued to sell Satoshis:
“Cash App generated $1.73 billion of Bitcoin revenue and $43 million of Bitcoin gross profit during the first quarter of 2022, down 51% and 42% year-over-year, respectively”.
Given the downward trend in Bitcoin prices due to heightened selling pressure in the global financial market, the company will be encouraged by a rise in non-Bitcoin revenues in the first quarter. The Block ecosystem, which includes Tidal and the group TBD, has grown by $44 year over year to $2.23 billion.
In addition, the Square ecosystem of payment solutions for merchants, which includes point-of-sale devices, has done well. It had a “gross profit of $661 million, up 41 percent year over year.”
According to Jack Dorsey’s Bitcoin-maxi credentials, the quarterly report featured 81 mentions of Bitcoin and 0 mentions of cryptocurrencies. According to the estimate, over 10 million Cash App accounts have purchased Bitcoin.
It was revealed in April that its US customers may automatically invest a portion of their direct deposit salaries into Bitcoin using Cash App, or that their “direct deposits” would instantly convert.