Fintech firm Block (SQ) reported $2.16 billion in Bitcoin revenue in its cash app unit in the first quarter, up 18% from $1.83 billion in the fourth quarter and up 25% from the first quarter of 2022, the company said in its letter to shareholders on Thursday. Block reports the total amount of bitcoin sold to customers as revenue.
Cash App generated $50 million in gross bitcoin profits in the first quarter, up 43% from the fourth quarter and up 16% year over year. The company as a whole reported gross profit of $770 million in the first quarter, up 16% year over year.
Thanks to an increase in the price of bitcoin, the company did not see any depreciation in its bitcoin holdings in the first quarter. Block reported a $9 million impairment on its Bitcoin investment in the fourth quarter and a $47 million impairment for the full year 2022.
As of March 31, the fair value of Block’s bitcoin holdings was $229 million versus its balance sheet carrying value of $126 million. Block’s original purchase price for its bitcoin holdings was $220 million.
Overall, the company reported revenue of $5 billion in the first quarter, beating estimates by $390 million; Non-GAAP earnings per share of 40 cents beat expectations by 6 cents.
Shares are up 2.4% in after-hours trading.
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