Mobile payment service Cash App, owned by Jack Dorsey’s tech company Block, has announced a staggering $2.16 billion in Bitcoin revenue over the past year. This feat was achieved despite the crypto winter that enveloped the crypto industry in the past months.
Cash App Records $2.16B BTC Revenue
According to a shareholder letter showing its Q1 2023 earnings, Cash App’s parent company, Block, highlighted that the $2.16 billion garnered from Bitcoin sales represents a 25% year-over-year increase. Block noted that it recognizes the Bitcoin revenue as “the total sale amount of Bitcoin sold to customers.”
The total net revenue derived by Block in the year-over-year timeframe was $4.99 billion. In comparison with other products through which Block generates revenue, Bitcoin was outstanding in this regard.
In Q1 2023 alone, Block recorded a $1.71 billion gross profit. Of this amount, Bitcoin saw only $50 million in sales, representing a 16% year-over-year increase. When mentioning the driving force for Bitcoin sales, the company wrote:
“The year-over-year increase in bitcoin revenue and gross profit was driven by an increase in the quantity of bitcoin sold to customers, partially offset by a decrease in the market price of bitcoin compared to the prior-year period.”
Bitcoin Sales Increase Despite Bearish Trends
It is not entirely surprising that Cash App achieved such a feat in Bitcoin sales since it offers its services to users across all 50 states in the United States.
Still, it is quite commendable that the company was able to keep up with a healthy Bitcoin buy-in from customers despite the bearish trends that defined the past year. After seeing its all-time high (ATH) of around $69,000 in 2021, Bitcoin’s price gradually fell, losing about 80% of its value. The leading cryptocurrency dropped to as low as $16,400.
However, the asset is starting to recover from those lows since the beginning of this year. At the time of writing, one BTC traded at $29,190.
