Block Inc (NASDAQ:SQ), said Thursday in its fourth-quarter results that it made $1.96 billion in Bitcoin (CRYPTO: BTC) revenue through its Cash App.
What Happened: Block reported $46 million in gross profits from Bitcoin during the fourth quarter, as per the company’s Q4 numbers.
Bitcoin revenue rose 12% on a year-over-year basis while the gross profits amounted to 2% of the Bitcoin revenue.
In the third quarter, Cash App generated $1.82 billion of Bitcoin revenue, while gross profit amounted to $42 million.
“Compared to the third quarter of 2021, Bitcoin revenue and gross profit increased on a quarter-over-quarter basis, driven primarily by increased volatility in the price of bitcoin, which affected trading activity compared to the prior quarter,” the company said.
See Also: How To Buy Block (SQ) Shares
Why It Matters: The Jack Dorsey-led company, formerly known as Square, said the Cash App made a little over $10 billion in Bitcoin sales through 2021. Gross profits amounted to $218 million.
Block reported Q4 revenue of $4.08 billion, an increase of 29% year-over-year, the number came ahead of Street estimates of $4.03 billion, according to Benzinga Pro.
Earnings per share amounted to $0.27 in the period, which beat a consensus estimate of $0.22.
This month, Cash App added Bitcoin lightning network support, which enabled free and near-instant transfers of the world’s largest cryptocurrency.
Price Action: On Thursday, Block shares shot up 18.3% in the after-hours session to $112.39 after closing 7.1% higher in the regular session at $94.99. At press time, BTC traded 5% higher at $38,756.47.
Read Next: Here's Why BofA Believes Block Is Undervalued
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