Block, the pro Bitcoin (BTC) umbrella firm that hosts Cash App and Square, is continuing its growth in 2022. According to the Shareholder Letter, gross profits increased 34% in the first quarter 2022.
The group made $1.29 billion in total gross profits. Operating costs rose by $700 million in the first quarter 2022, an increase of 70% over the previous year. Afterpay was acquired, which is a buy-now-pay later service.
From January 2022 to March 2022 net Block’s revenues totaled $3.96 trillion, a 22% decrease compared to 2022. According to the group, the decline was caused by a drop in Bitcoin revenue.
Although the numbers are lower than the quarter before, Cash App, Block’s Bitcoin retail outlet and mobile payment service, continues to sell Satoshis.
“Cash app generated $1.73 billion in Bitcoin revenue and $43 millions of Bitcoin gross profit during its first quarter 2022, a decrease of 51% and 42%, respectively, year-over-year.”
The group will be encouraged by an increase in non Bitcoin revenues in quarter 1. This is in light of Bitcoin prices failing to break $30,000 for quarter 2. The march has increased by 44$ over the past year to $2.23 trillion. However, the Block ecosystem, which includes Tidal as well as the group TBD, is not entirely dependent on the performance of the crypto market.
The Square ecosystem of payment options for merchants, which includes point-of-sale devices, has also performed well. It made a gross profit of $661 millions, an increase of 41% over the previous year.
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According to Jack Dorsey, the quarterly report contained 81 mentions about Bitcoin and zero on cryptocurrency. The report also states that more than 10 million Cash App accounts have purchased Bitcoin. Cash App doesn’t offer popular cryptocurrencies like Ethereum (ETH), Dogecoin(DOGE), etc.
According to the report, in April, customers in the United States were able to automatically invest a portion from their direct deposits into Bitcoin using Cash App. Or that their “direct deposit” would convert automatically.
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