Popular mobile payment platform Cash App, developed by Jack Dorsey’s Block Inc., generated $10 billion in bitcoin revenue and $218 million in bitcoin gross profit in 2021. Compared to the previous year, the bitcoin revenue increased 119% while gross profit rose 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 stated:
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.
“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 of 2021, Cash App generated $10.01 billion of bitcoin revenue and $218 million of bitcoin gross 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.
The CEO of cryptocurrency exchange FTX, Sam Bankman-Fried, has urged Block to clear the confusion. He tweeted Thursday: “Hey guys please stop calling this ‘revenue.’ It’s volume.” He clarified that Block had about $2 billion of trading volume and charged about 2% on it, making around $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.
