Block, the parent company of Square, Cash App, Spiral, TIDAL, and TBD, released Cash App’s Q4 2021 results, which demonstrate how providing Bitcoin brokerage services might be a good business strategy.
During Q4 2021, Cash App generated $1.96 billion in bitcoin revenue and $46 million of bitcoin gross profit, up 12% and 14% year-over-year (YoY), respectively. The compounding annual growth rate (CAGR) for Cash App’s bitcoin revenue and gross profit grew 232% and 285% YoY, respectively. As of December 31, the fair market value of the company’s bitcoin holdings was $371 million.
In a Twitter space that took place on February 16, Jack Dorsey, CEO of Block and ex-CEO of Twitter, had as much to say about Bitcoin as one might imagine.
“For bitcoin — and in all the other projects around it — I think if we're increasing transparency within the next five to 10 years; if we're increasing participation, and that participation is globally represented; if we're providing daily utility, especially in the form of currency, globally — that is success,” he said.
Dorsey’s enthusiasm for Bitcoin has become even more apparent since his departure from Twitter as he has pushed a number of different initiatives at Block related to the peer-to-peer currency.
In the Twitter Space mentioned above, Jack reiterated the importance of Bitcoin and the responsibility he feels towards it: “This is meant to be a potential replacement to the US dollar’s dominance, and you can’t screw that up.”
In fact, Spiral, the independent subsidiary of Block dedicated to open-source Bitcoin development, is focused solely on advancing the adoption of Bitcoin as it continues to grow “like a spiral from a single point, encompassing more and more space until it touches everything” and eventually becomes a global currency.
During the fourth quarter of 2021, Block raked in gross profit of $1.18 billion, up 47% YoY, while Cash App generated gross profit of $518 million, up 37% YoY. The Square ecosystem generated gross profit of $657 million, 54% higher than the previous year.