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Block’s Q1 Bitcoin Revenue Rises 18% From Q4, Gains 25% From a Year Ago
The company booked $50 million in bitcoin gross profit in the first quarter..
Updated May 9, 2023, 4:13 a.m. Published May 4, 2023, 8:56 p.m.
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.
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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.
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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.
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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.
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- 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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