Popular mobile payment platform Cash App, developed by Jack Dorsey’s Block Inc., generated $10 billion in bitcoin revenue and $218 million in bitcoin gross profit in 2021. Compared to the previous year, the bitcoin revenue increased 119% while gross profit rose 124%.
Cash App’s Bitcoin Business
Block Inc., formerly Square Inc., released its Q4 2021 earnings report Thursday. The report includes the performance of Cash App, the firm’s mobile payment platform that allows users to trade bitcoin.
The company stated:
Cash App generated $1.96 billion of bitcoin revenue and $46 million of bitcoin gross profit during the fourth quarter of 2021, up 12% and 14% year over year, respectively.
“Compared to the third quarter of 2021, bitcoin revenue and gross profit increased on a quarter-over-quarter basis, driven primarily by increased volatility in the price of bitcoin, which affected trading activity compared to the prior quarter,” Block detailed, adding:
For the full year of 2021, Cash App generated $10.01 billion of bitcoin revenue and $218 million of bitcoin gross profit, up 119% and 124% year over year, respectively.
Block explained: “Bitcoin revenue is the total sale amount of bitcoin to customers. Bitcoin costs are the total amount of bitcoin that we purchase.” This means Block’s version of bitcoin revenue is simply its trading volume.
The CEO of cryptocurrency exchange FTX, Sam Bankman-Fried, has urged Block to clear the confusion. He tweeted Thursday: “Hey guys please stop calling this ‘revenue.’ It’s volume.” He clarified that Block had about $2 billion of trading volume and charged about 2% on it, making around $40 million in profit.
The Jack Dorsey-led company is holding some BTC on its balance sheet. “In the fourth quarter of 2020 and first quarter of 2021, we invested $50 million and $170 million, respectively, in bitcoin,” the company noted.
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