Block Nets $1.18B While Coinbase Revenue Crosses $2.5B in Q4 ’21

Key Insights

• Block’s overall revenue crossed $1.18 billion while its Bitcoin revenue for the year almost hit $2 billion
• Coinbase, on the other hand, witnessed a year on year growth of 676%, with revenue touching $4 billion
• Bitcoin played a significant role in both the companies’ revenue this year

While the world dabbles about the merits and demerits of cryptocurrencies, crypto companies continue to provide solid answers. Bitcoin-based revenue of both the companies exceeded expectations in the last quarter of 2021

Bitcoin in the Block

Block (previously Square) and Coinbase posted their fourth quarter’s financial report for 2021. CashApp, the payment service from Block, managed to rake in a gross profit of $518 million which marked a 37% year-on-year increase.

On the other hand, the Cash Card witnessed over 13 million actives in December, which accounted for 30% of their monthly 44 million transacting active base.

This revenue added to the company’s overall gross profit of $4.4 billion for the entire year, significantly higher than the 2020s $2.73 billion marking a 62% YoY increase.

CashApp, on the other hand, registered a gross profit of $2.07 billion, 69% higher than the previous year’s $1.23 billion.

Block also stated that Bitcoin revenue almost touched $2 billion in the fourth quarter and crossed $10 billion in the entire year, significantly growing from the previous year’s $4.5 billion.

Coinbase, on the other hand, while having a good year, witnessed a decrease in Bitcoin and crypto-based transactions.

Of the $1.6 trillion of volume traded throughout the year, Bitcoin only accounted for 24% of it ($401 billion).

This figure was quite a reduction compared to the previous year’s 41%. Although the total volume did increase, the contribution came down.