Crypto News

Jack Dorsey’s Block reports $2.16B Bitcoin revenue from Cash App in Q1

Published by
Nonhlanhla P Dube
  • Fintech firm Block, owned by Twitter founder Jack Dorsey, has reported $2.16 billion in Bitcoin revenue on its flagship product, Cash App, in Q1 2023, marking a 25% YoY increase in Bitcoin revenue.
  • Cash App’s total profits reached over $931 million in Q1 2023, which is a 49% YoY increase. However, this pales in comparison to the company’s gross profit, which came in at $1.71 billion.
  • The earnings report was positively received by the equities market, with Block’s share price surging 5% to $63.50 in after-hours trading, before settling down to a 2.5% gain at the time of publication

Fintech firm Block, owned by Twitter founder Jack Dorsey, has reported impressive results for the first quarter of 2023, with its flagship product Cash App generating over $2.16 billion in Bitcoin revenue. This represents a 25% year-on-year increase in Bitcoin revenue for the popular payment app in South Africa. The revenue was driven by an increase in the quantity of Bitcoin sold to customers, although it was partially offset by a decrease in the market price of Bitcoin compared to the same period in 2022.

According to a shareholder letter announcing its Q1 2023 earnings, Block also reported that its total profits reached over $931 million in the first quarter of 2023, marking a 49% increase year-over-year. The company’s gross profit, which came in at $1.71 billion, was even more impressive. Block also owns the popular business payment service Square, which reported a slight (3.8%) decline in profits from the fourth quarter of 2022.

The fintech firm’s earnings per share of 40 cents beat analyst expectations of 35 cents per share by 14%, and its first-quarter revenue rose 26% year-on-year. The equities market responded positively to the earnings filings, with the fintech firm’s share price briefly surging 5% to $63.50 in after-hours trading, before settling down to a 2.5% gain at the time of publication.

During the earnings conference call, Block CEO Jack Dorsey identified artificial intelligence and “open protocols” as technologies that would aid the company in proactively responding to the “significant shifts” in the global financial system. He cited continued United States bank failures and de-dollarization as the primary culprits.

Block’s impressive results come after a difficult period for the company’s share price, which suffered a significant 25% hit following the release of a scathing report penned by famed short sellers Hindenburg Research. On March 23, Hindenburg criticized Block for “systematically taking advantage of the demographics it claims to be helping,” and declared that Block’s success with Cash App only hinged on a “willingness to facilitate fraud against consumers and the government.” However, Block responded to Hindenburg’s allegations, stating that the report was designed to deceive and confuse investors.

Overall, Block’s impressive results for the first quarter of 2023 demonstrate the growing popularity of Bitcoin and Cash App in South Africa and beyond. The company’s innovative use of technology, including artificial intelligence and open protocols, suggests that it is well-positioned to respond to the changing global financial landscape.

Table 1: Bitcoin revenue figures

QuarterBitcoin revenue (USD)
Q1 2023$2.16 billion
Q4 2022$1.83 billion
Q1 2022$1.73 billion
This table shows the quarterly Bitcoin revenue figures in billions of dollars (USD) for fintech firm Block’s flagship product, Cash App, as reported in the article.

Table 2: Cash App profits

QuarterCash App profits (USD)
Q1 2023$931 million
Q1 2022$624 million
This table shows the quarterly profits in millions of dollars (USD) for Cash App, as reported in the article.

Table 3: Gross profit figures.

QuarterGross profit (USD)
Q1 2023$1.71 billion
Q1 2022$964 million
This table shows the quarterly gross profit figures in billions of dollars (USD) for Block, as reported in the article
Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

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Nonhlanhla P Dube
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