According to the financial report data released by the payment company Block, the Bitcoin sales revenue of Cash App in the fourth quarter was US$1.83 billion, a year-on-year decrease of 7%, but higher than the US$1.76 billion reported in the third quarter. Bitcoin gross profit was $35 million, down 25% year-over-year.
In the letter to shareholders, Block stated that the year-over-year decline in Bitcoin revenue and gross profit was caused by the drop in Bitcoin price. Meanwhile, Cash App’s Bitcoin revenue for the full year of 2022 will be $7.11 billion and gross profit will be $156 million, down 29% and 28%, respectively, from the previous year.
In addition, in the fourth quarter, Block accrued an impairment charge of US$9 million on its bitcoin investment, and the bitcoin impairment loss for the full year of 2022 was US$47 million. The firm noted that as of Dec. 31, the fair value of Block’s bitcoin investment was $133 million, which was $30 million higher than the investment’s book value after deducting impairment charges.