Popular mobile payment platform Cash App, developed by Jack Dorsey’s Block Inc., generated $10 billion in bitcoin revenue and $218 million in gross bitcoin profit in 2021. Compared to the previous year, bitcoin revenue increased by 119% while gross profit increased by 124%.
Cash App Bitcoin Activity
Block Inc., formerly Square Inc., released its fourth quarter 2021 earnings report on Thursday. The report includes the performance of Cash App, the company’s mobile payment platform that allows users to exchange bitcoin.
The company said:
Cash App generated $1.96 billion in bitcoin revenue and $46 million in gross bitcoin profit during the fourth quarter of 2021, up 12% and 14% year-over-year, respectively .
“Compared to the third quarter of 2021, bitcoin revenue and gross profit increased quarter-over-quarter, primarily due to increased bitcoin price volatility, which affected trading activity relative in the prior quarter,” Block detailed, adding:
For the full year 2021, Cash App generated $10.01 billion in bitcoin revenue and $218 million in gross bitcoin profit, up 119% and 124% year-over-year, respectively.
Block explained, “Bitcoin revenue is the total amount of bitcoin sold to customers. Bitcoin costs are the total amount of bitcoin we buy. This means that Block’s version of bitcoin’s revenue is simply its trading volume.
FTX cryptocurrency exchange CEO Sam Bankman-Fried urged Block to clear up the confusion. He tweeted on Thursday: “Hey guys please stop calling this ‘income’. This is volume. He clarified that Block has around $2 billion in trading volume and charges around $2 % on it, making about $40 million in profit.
The company run by Jack Dorsey holds BTC on its balance sheet. “In Q4 2020 and Q1 2021, we invested $50 million and $170 million in bitcoin, respectively,” the company noted.
What do you think of Cash App’s bitcoin activity? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Warning: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
