Block, a financial technology firm, reported an increase in their bitcoin revenue by 18% in Q1 of 2023 as compared to Q4 of 2022. As per the company's annual shareholder letter on Thursday, the total sale amount of bitcoin to the customers was reported to be $2.16 billion in the first quarter, up 25% from the same quarter the year before. The profits gained through bitcoin trading also rose noticeably, with Cash App alone having gained a 43% increase over Q4 and a 16% increase over Q1 2022.

This growth in profit is mainly attributed to the ascendance in the price of bitcoin, hence resulting in Block not having to book an impairment loss on its bitcoin holdings in the first quarter. The company, however, reported an impairment charge of $9 million in Q4 on its bitcoin investments and an impairment of $47 million for the full year in 2022.

For Q1, the fair value of Block's bitcoin holdings was estimated to be $229 million compared to the carrying value of $126 million recognized on the balance sheet. The original purchase price on their bitcoin holdings was $220 million.

As per the report card for Q1, the overall revenue for the company was recorded to be $5 billion, significantly surpassing the estimated goal of $4.61 billion by $390 million. The non-GAAP earning per share was 40 cents, making a 6 cent beat of the expectations.

This impressive financial performance was clearly reflected in the stock market as following after their report was released; SQ's stock went up with a 2.4% in the after-hour trading.



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