Block Reports $47M Bitcoin Impairment Loss in 2022, Cash App Generates $156M Bitcoin Gross Profit

Digital payment company Block released a report for the fourth quarter of 2022, saying that its mobile payment platform Cash App had a Bitcoin gross profit of US$35 million in the fourth quarter, a year-on-year decrease of 25%, slightly lower than the US$37 million reported in the third quarter. Cash App’s total bitcoin sales to customers (bitcoin revenue) was $1.83 billion. For all of 2022, Cash App generated $7.11 billion in Bitcoin revenue and $156 million in Bitcoin gross profit. The company's overall gross profit rose 40% from a year earlier to $1.66 billion. Block recorded a $9 million impairment charge on its bitcoin investment in the fourth quarter, compared to $2 million in the third quarter. For all of 2022, The Block reported $47 million in Bitcoin impairment losses. As of Dec. 31, based on "observable market prices," the fair value of Block's bitcoin investment was $133 million, $30 million higher than the investment's book value net of impairment charges.