Q4 2021 Report Reveals Cash App Brought in $1.96 Billion in Bitcoin Revenue
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- Bitcoin is down 0.25% in the last 24 hours.
- Sam Bankman-Fried has asked Block to clear up the misconception.
The Q4 2021 earnings report from Block Inc., previously Square Inc., was issued on Thursday. Users may trade bitcoin using the company’s mobile payment platform, Cash App, detailed in the report. When it comes to buying Bitcoin, the famous Cash App mobile payment service has been a popular choice. According to a financial report released today, the fourth quarter of 2021 brought in $1.96 billion in Bitcoin revenue for the corporation.
In a statement, the company said:
“Cash App generated $1.96 billion of bitcoin revenue and $46 million of bitcoin gross profit during the fourth quarter of 2021, up 12% and 14% year over year, respectively.”
Confusion Between Revenue and Volume
FTX exchange CEO Sam Bankman-Fried has asked Block to clear up the misconception. “Hey guys please stop calling this ‘revenue.’ It’s volume,” he said on Twitter on Thursday. He went on to say that Block had a trading volume of roughly $2 billion and paid a commission of about 2%, resulting in a profit of about $40 million.
However, just 2% of Block’s income was converted into profit. In other words, it’s around the same as Block’s transaction cost on a typical Bitcoin buy. The corporation made $46 million as a result of this.
Block’s balance sheet has taken a hit due to the asset’s sluggish performance since it hit $69,000 in November. The corporation reported a $71 million loss for the year after acquiring $50 million of Bitcoin in Q4 2020 and another $170 million in Q1 2021. According to CoinMarketCap, the Bitcoin price today is $39,208.45 USD with a 24-hour trading volume of $19,505,460,214 USD. Bitcoin is down 0.25% in the last 24 hours.
Cryptocurrency
