Block (SQ), a fintech firm, has reported a total revenue of $2.16 billion from the sale of bitcoin to customers through its Cash App unit during the first quarter of the year. This is an 18% increase from the previous quarter’s revenue of $1.83 billion, and a 25% increase from the same period in 2022. The company has attributed the increase to the rise in the price of bitcoin.
In the first quarter, Cash App generated a gross profit of $50 million from bitcoin, which is a 43% increase from the previous quarter and a 16% increase year-over-year. The company’s gross profit as a whole for the first quarter was $770 million, which is a 16% increase from the same period last year.
Block did not incur any impairment loss on its bitcoin holdings in the first quarter due to the increase in the price of bitcoin. In the previous quarter, the company incurred an impairment charge of $9 million on its bitcoin investment, and an impairment of $47 million for the full year in 2022. As of March 31, the fair value of Block’s bitcoin holdings was $229 million, while the carrying value recognized on the balance sheet was $126 million. The company’s original purchase price on its bitcoin holdings was $220 million.
The company’s total revenue for the first quarter was $5 billion, which exceeded estimates by $390 million. The non-GAAP earnings per share for the quarter were 40 cents, which beat expectations by 6 cents.