Bitcoin Crash and Weak Demand Cut Jack Dorsey's App Cash Cryptocurrency Earnings by 12% in Q3
Jack Dorsey's SQ Cash app, run by Block Inc, generated $37 million in Bitcoin gross profit in Q3 2022, where its overall gross profit was $783 millions of dollars.
What happened: This implies that Bitcoin contributed nearly 4.7% to Cash App's gross profit in Q3.
Year-over-year, Cash App's Bitcoin gross profit declined 12%, while the total amount of Bitcoin sold to customers, which the company recognizes as revenue Bitcoin, was $1.76 billion - down 3% year on year, according to the company's earnings release.
"Bitcoin revenue and gross profit were relatively flat compared to the second quarter of 2022," Block said.
In the second quarter, Block said the Cash app generated $1.79 billion in Bitcoin revenue and $41 million in gross profit.
See also: 9 best brokerage and investment apps
Why it matters: "The year-over-year decline in bitcoin revenue and gross margin was primarily due to lower consumer demand and lower price bitcoin,” the company said.
BTC/USD bitcoin has fallen 57.4% in value since the start of the year. At the time of writing, it was trading at $20,329.15.
Block's bitcoin holdings stand at 8,027 coins worth $163.15 million, according to data from CoinGecko. The company recorded a $2 million bitcoin impairment loss on its investment, according to its income statement.
Block's third-quarter revenue grew 17% year-over-year to $4.52 billion, beating analysts' average estimate of $4.5 billion , according to Benzinga Pro.
Earnings per share came in at $0.42, beating estimated EPS of $0.24, according to Benzinga data.
Price Action: Block shares closed up 1.7% at $61.26 in the regular session and were up almost 0.1% in the after-hours exchanges.
Read more: Coinbase sees more headwinds in 2023, "low income "for several Years
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Jack Dorsey's SQ Cash app, run by Block Inc, generated $37 million in Bitcoin gross profit in Q3 2022, where its overall gross profit was $783 millions of dollars.
What happened: This implies that Bitcoin contributed nearly 4.7% to Cash App's gross profit in Q3.
Year-over-year, Cash App's Bitcoin gross profit declined 12%, while the total amount of Bitcoin sold to customers, which the company recognizes as revenue Bitcoin, was $1.76 billion - down 3% year on year, according to the company's earnings release.
"Bitcoin revenue and gross profit were relatively flat compared to the second quarter of 2022," Block said.
In the second quarter, Block said the Cash app generated $1.79 billion in Bitcoin revenue and $41 million in gross profit.
See also: 9 best brokerage and investment apps
Why it matters: "The year-over-year decline in bitcoin revenue and gross margin was primarily due to lower consumer demand and lower price bitcoin,” the company said.
BTC/USD bitcoin has fallen 57.4% in value since the start of the year. At the time of writing, it was trading at $20,329.15.
Block's bitcoin holdings stand at 8,027 coins worth $163.15 million, according to data from CoinGecko. The company recorded a $2 million bitcoin impairment loss on its investment, according to its income statement.
Block's third-quarter revenue grew 17% year-over-year to $4.52 billion, beating analysts' average estimate of $4.5 billion , according to Benzinga Pro.
Earnings per share came in at $0.42, beating estimated EPS of $0.24, according to Benzinga data.
Price Action: Block shares closed up 1.7% at $61.26 in the regular session and were up almost 0.1% in the after-hours exchanges.
Read more: Coinbase sees more headwinds in 2023, "low income "for several Years
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
What's Your Reaction?
