Block Payment Application Earns Rp. 31.6 Trillion in Revenue from Bitcoin Sales

Liputan6.com, Jakarta – Thanks to an increase in the number of Bitcoins sold to its customers, former Twitter CEO Jack Dorsey’s company Block Cash App generated USD 50 million or equivalent to IDR 733.7 billion (assuming exchange rate IDR 14,674 per US dollar) Bitcoin gross profit in the first quarter of 2023.

“It’s up 16 percent year-over-year,” the company said in a shareholder letter, quoted from Decrypt, Sunday (7/5/2023).

The total amount of bitcoin sold to customers, which according to Block recognizes as Bitcoin revenue, is USD 2.16 billion or equivalent to Rp. 31.6 trillion, up 25 percent year over year.

In its previous earnings report, Block reported Bitcoin revenue of USD 1.83 billion or the equivalent of IDR 26.8 trillion from the Cash App business.

Bitcoin Revenue Growth Drivers

According to the company, the year-over-year increase in Bitcoin revenue and gross profit was driven by an increase in the number of Bitcoins sold to customers, partly offset by a decrease in the market price of Bitcoin compared to the previous year.

Block, formerly known as Square, is a payments company founded by Twitter co-founder Jack Dorsey.

It caters to small and medium-sized businesses, with the mobile payment service Cash App being a popular tool for buying and selling Bitcoins, especially for younger users and those who prefer to carry out financial transactions on their mobile devices.

There Is No Loss Of Decreasing The Value Of Bitcoin Holdings

In its latest earnings report, the company also disclosed that it posted no impairment loss on its Bitcoin holdings in the first quarter after investing a total of USD 220 million or equivalent to IDR 3.2 trillion in the leading cryptocurrency in the fourth quarter of 2020 and the first quarter of 2021.

At that time, Block bought Bitcoin worth USD 50 million or equivalent to Rp. 733.7 billion and USD 170 million or equivalent to Rp. 2.4 trillion, respectively.

As Block explains, Bitcoin as an indefinite-life intangible asset can incur an impairment loss if its fair value falls below its carrying value during the valuation period.