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Jack Dorsey's Block Sees Drop in Bitcoin Revenue as Consumer Demand, Crypto Prices Slump
Block cited declines in consumer demand and the price of bitcoin for its bitcoin-based revenue decline.
Updated May 9, 2023, 4:01 a.m. Published Nov 3, 2022, 8:38 p.m.
Fintech firm Block (SQ) reported $1.76 billion in revenue in its Cash App unit during the third quarter, down 3% year-over-year and lower than the $1.79 billion reported in the second quarter.
Additionally, Cash App generated $37 million of bitcoin gross profit in the third quarter, down 12% from a year earlier.
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The drop in bitcoin revenue and gross profit was driven primarily by declines in consumer demand and the price of bitcoin, Block said in its quarterly earnings statement Thursday.
Block, whose chairman and co-founder is Jack Dorsey, recorded an impairment charge of $2 million on its bitcoin investment during the third quarter. As of Sept. 30, the fair value of Block's bitcoin investment was $156 million based on “observable market prices,” which was $45 million greater than the carrying value of the investment after impairment charges, the company noted.
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Shares of Block jumped 14% in post-market trading Thursday.
Block posted $1.57 billion in overall gross profit for the quarter, up from $1.47 billion in the second quarter. Total net revenue was $4.52 billion, up 17% year over year. Excluding bitcoin revenue, total net revenue was $2.75 billion, up 36% versus the prior year.
Read more:Jack Dorsey’s Block Draws Analyst Downgrade on Bitcoin Sentiment
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
What to know:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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