Block, previously known as Square, said Thursday that Cash App generated $1.73 billion worth of Bitcoin sales during Q1 of 2022. The company also reported generating $43 million in Bitcoin gross profit, according to the Q1 shareholder letter.
"Cash App generated $1.73 billion of bitcoin revenue and $43 million of bitcoin gross profit during the first quarter of 2022, down 51% and 42% year over year, respectively. On a two-year CAGR basis, Bitcoin revenue and gross profit grew 138% and 155%, respectively,"
Cash App itself generated $2.46 billion of total revenue and $624 million of gross profit in Q1.
As mentioned in the shareholder letter, the Cash App ecosystem is focused on expanding customer awareness and access to Bitcoin which has allowed them to drive adoption. At the end of Q1, more than 10 million Cash App accounts have bought Bitcoin.
Bitcoin features were introduced to the Cash App ecosystem to increase inflows of capital in 2018. In April of this year, they announced a new direct deposit feature that allows Cash App users to be paid in Bitcoin. Users who have a Cash Card (Cash App debit card) are able to receive a portion of their recurring paycheck deposit in Bitcoin with no transaction fee. The company continues to see growing momentum with customers bringing their paychecks into Cash App.
The contribution of Jack Dorsey’s Cash App has added utility and value to the overall Bitcoin ecosystem and has shown that a Bitcoin company can generate substantial economic prosperity.