- Written by: Nick
- Thu, 05 May 2022
- Russian Federation
Cash App’s user-friendly platform continues to be a driver of Bitcoin demand Covered: Bitcoin Revenues Down, but Sales Still Booming Cash App Continues to Help Innovate Bitcoin Bitcoin Revenues Down, but Sales Still Booming Block’s Cash App has reported impressive Q1 numbers in regard to Bitcoin buys on the app. Today Block announced it generated […] The post Block’s Cash App Reports Billions in Bitcoin Sales in Q1 appeared first on CryptosRus.
Block’s Cash App Reports Billions in Bitcoin Sales in Q1
Cash App’s user-friendly platform continues to be a driver of Bitcoin demand
Covered:
- Bitcoin Revenues Down, but Sales Still Booming
- Cash App Continues to Help Innovate Bitcoin
Bitcoin Revenues Down, but Sales Still Booming
Block’s Cash App has reported impressive Q1 numbers in regard to Bitcoin buys on the app. Today Block announced it generated $1.73 billion worth of bitcoin sales via Cash App during 2022’s first quarter. Of that $1.73 billion, Block netted $43 million in gross profit. These numbers were reported in the Q1 shareholders’ letter, released at the close of today’s market. While the numbers were down from the prior year, “on a two-year CAGR basis, bitcoin revenue and gross profit grew 138% and 155%, respectively.”
The Block explained that the reason the revenues were down on the year was likely due to the market cool-off. “The year-over-year decrease in bitcoin revenue and gross profit was driven primarily by relative stability in the price of bitcoin during the quarter, which affected consumer demand and trading activity compared to the prior year period.” However, Block itself has grown, with total net revenues coming in at nearly ~4 billion, up 22% year-over-year. Block’s integration of the lightning network, making sending and spending fast and free, will continue to push demand higher.
Over 10 million people have bought Bitcoin through Cash App since the feature was introduced in 2018.
— Kevin Rooke (@kerooke) May 5, 2022
Cash App Continues to Help Innovate Bitcoin
The success of Cash App will certainly have an affect on Bitcoin’s adoption with the non-crypto savvy majority. As Cash App continues to integrate Bitcoin facing features, Cash App can be the vector to onboard millions who would otherwise not get involved. As noted in the shareholder letter, Cash App announced a new direct deposit feature “that allows customers to be paid in bitcoin. Cash App customers in the U.S. with an activated Cash Card are able to receive a portion of their recurring paycheck deposit in bitcoin with no transaction fee.”
Excluding bitcoin, total net revenue in the first quarter was $2.23 billion, up 44% year over year. Gross profit was $1.29 billion in the first quarter, up 34% year over year and up 55% on a two-year CAGR basis. As sleek, all-encompassing applications like Cash App continue to grow, Bitcoin will be a benefactor this; especially with someone like Jack Dorsey at the helm. Expect to hear a lot of testimony’s about getting into Bitcoin via Cash App once the price starts to bottom out and rebound.
The post Block’s Cash App Reports Billions in Bitcoin Sales in Q1 appeared first on CryptosRus.