Here's How Jack Dorsey's Square Fared On The Bitcoin Front In The Latest Quarter

Block Inc SQ, said Thursday in its fourth-quarter results that it made $1.96 billion in Bitcoin BTC/USD revenue through its Cash App.

What Happened: Block reported $46 million in gross profits from Bitcoin during the fourth quarter, as per the company’s Q4 numbers.

Bitcoin revenue rose 12% on a year-over-year basis while the gross profits amounted to 2% of the Bitcoin revenue.

In the third quarter, Cash App generated $1.82 billion of Bitcoin revenue, while gross profit amounted to $42 million.

“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,” the company said.

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Why It Matters: The Jack Dorsey-led company, formerly known as Square, said the Cash App made a little over $10 billion in Bitcoin sales through 2021. Gross profits amounted to $218 million.

Block reported Q4 revenue of $4.08 billion, an increase of 29% year-over-year, the number came ahead of Street estimates of $4.03 billion, according to Benzinga Pro.

Earnings per share amounted to $0.27 in the period, which beat a consensus estimate of $0.22.

This month, Cash App added Bitcoin lightning network support, which enabled free and near-instant transfers of the world’s largest cryptocurrency.

Price Action: On Thursday, Block shares shot up 18.3% in the after-hours session to $112.39 after closing 7.1% higher in the regular session at $94.99. At press time, BTC traded 5% higher at $38,756.47.

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