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Jack Dorsey’s block hits $1.3 billion in profit and $43 million in BTC trading revenue in Q1

Block, the pro-Bitcoin (BTC) umbrella company that hosts Cash App, Square, and Afterpay, continues to grow in 2022. According to its letter to shareholders, gross profits for the first quarter of 2022 “up 34% year over year. ”

Overall, the group had gross profits of US$1.29 billion. However, operating expenses also increased by “$1.52 billion in the first quarter of 2022, up 70% year over year.” The group says its acquisition of Afterpay, a buy-now-pay-later service, could explain the rising costs.

Overall, Block’s net revenue for January-March 2022 reached $3.96 billion, down 22% from 2022. The group confirms that the decline was “due to a drop in Bitcoin revenue.”

Cash App, Block’s bitcoin retail store and mobile payment service, continued to sell satoshis, although numbers are less promising than the previous quarter:

“Cash App generated $1.73 billion in bitcoin revenue and $43 million in bitcoin gross profit in Q1 2022, down 51% and 42% year-on-year, respectively” .

With bitcoin prices struggling to surpass $30,000 in the second quarter, the group is encouraged by a surge in non-bitcoin earnings in the first quarter. The block ecosystem, which also includes Tidal and group TBD, is up $44 year-on-year to $2.23 billion and is not entirely dependent on the performance of the crypto market.

Also, the Square ecosystem of payment solutions for merchants, including point-of-sale devices, has thrived. It delivered “gross profits of $661 million, a 41% increase year over year.”

Related: FTX CEO sees no future in bitcoin payments, community shoots back

The quarterly report contained 81 mentions of Bitcoin and zero mentions of cryptocurrencies, staying true to Jack Dorsey’s Bitcoin Maxi credentials. Additionally, the report states that over 10 million Cash App accounts bought Bitcoin. Cash App does not offer the purchase of common cryptocurrencies such as Ethereum (ETH) or Dogecoin (DOGE).

In April, it was announced that its customers in the United States could use the Cash App to automatically invest a portion of their direct deposit paychecks in Bitcoin, or have their “direct deposits” automatically converted, the report said.

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