Fintech firm Block (SQ) reported $2.16 billion in bitcoin revenue in its Cash App unit during the first quarter, up 18 from $1.83 billion in Q4 and up 25 from Q1 2022, the company said in its shareholder letter on Thursday. Block reports the total sale amount of bitcoin to customers as revenue.
Cash App generated $50 million in bitcoin gross profit in the first quarter, up 43 from Q4 and ahead 16 year over year. The company as a whole reported $770 million in gross profit in Q1, up 16 year over year.
Thanks to a rise in the price of bitcoin, the company did not book an impairment loss on its bitcoin holdings in the first quarter. Block reported an impairment charge of $9 million in Q4 on its bitcoin investment and an impairment of $47 million for the full year in 2022.
As of March 31, the fair value of Block‘s bitcoin holdings was $229 million versus the carrying value of $126 million recognized on the balance sheet. Block‘s original purchase price on its bitcoin holdings was $220 million.
Overall, the company reported Q1 revenue of $5 billion, topping estimates by $390 million; non-GAAP earnings per share of 40 cents beat expectations by 6 cents.
Shares are higher by 2.4 in after-hour trading.
Edited by Stephen Alpher.
