Block, the pro-Bitcoin (BTC) umbrella company that houses Cash App, Square, and Afterpay, continues its growth in 2022. According to its letter to shareholders, in the first quarter of 2022, gross profits are “up 34% year over year”. anus.”
In total, the group made $1.29 billion in gross profit. Nevertheless, operating costs also rose “USD 1,520 million in the first quarter of 2022, 70% more than in the previous year”. The group explains that the acquisition of Afterpay, a buy now pay later service, could explain the increase in costs.
In total, Block’s net income reached $3.96 billion from January to March 2022, down 22% from 2021. The group confirms that the drop was “driven by a decline in Bitcoin income.”
Cash App, Block’s Bitcoin point of sale as well as a mobile payment service, continued to sell Satoshis, although the numbers are less promising than the previous quarter:
“Cash App generated $1.73 billion in Bitcoin revenue and $43 million in gross Bitcoin profit during Q1 2022, down 51% and 42% year-over-year, respectively.”
With Bitcoin prices struggling to break above $30,000 in Q2, the group will be buoyed by rising non-Bitcoin earnings in Q1. Rising $44 year-over-year to $2.23 billion, Block’s ecosystem, which also includes Tidal and the TBD group, is not entirely dependent on the performance of the cryptocurrency market.
Additionally, Square’s ecosystem of merchant payment solutions, including point-of-sale devices, has performed well. It has delivered a “gross profit of USD 661 million, an increase of 41% year-on-year”.
The quarterly report made 81 mentions of Bitcoin and zero of the cryptocurrency, staying true to Jack Dorsey’s Bitcoin-maxi credentials. Furthermore, the report notes that more than 10 million Cash App accounts have purchased Bitcoin. Cash App does not offer the purchase of popular cryptocurrencies such as Ethereum (ETH) or Dogecoin (DOGE).
In April, it was announced that its customers in the United States would be able to automatically invest a portion of their direct deposit payrolls in Bitcoin using the Cash App, or have their “direct deposits” converted automatically, the report said.
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