Q4 Financial Report: Coinbase's revenue increased sixfold from the previous year, while Block (Square) achieved nearly $2 billion in Bitcoin sales.

On 2/24, cryptocurrency exchange Coinbase and payment company Block, formerly known as Square, both released their fourth-quarter 2021 financial reports. Coinbase exceeded analysts' expectations in Q4 revenue but is facing challenges such as the decline in Bitcoin and reduced trading volume in Q1 this year. Cash App under Block reported a Bitcoin sales volume of $1.96 billion, generating $46 million in gross profit.

Coinbase

According to the Q4 financial report, the relevant data is as follows:

• Net revenue: $25 billion, analysts expected $19.4 billion | Q3 was $13 billion.
• Earnings per share: $3.32, expected $1.85 | Q3 was $1.62.
• Retail trading fee net revenue: $21.85 billion | Q3 was $10.22 billion.

As usual, the majority of Coinbase's revenue comes from retail trading fees, accounting for nearly ninety percent. Both net revenue and earnings per share doubled compared to Q3, with the full-year net revenue being six times that of 2020.

Income from block rewards such as Ethereum staking also increased from around $80 million in Q3 to $102 million.

Current bearish factors for Coinbase include potential declines in trading volume, and its stock price is also closely tied to Bitcoin prices. The upcoming NFT market launch and its potential impact on the NFT platform landscape will be crucial.

Since its listing, Coinbase's stock price has dropped by fifty percent, but better-than-expected financial results led to a 12% rebound. CEO Brian Armstrong has not made any public statements since the potential controversy surrounding the Super Bowl ad.

Block

According to the Q4 financial report, the relevant data is as follows:

• Net revenue: $41 billion, in line with analysts' expectations | Q3 was $38 billion.
• Earnings per share: $0.27, expected $0.22 | Q3 was $0.37.
• GPV Gross Payment Volume: $463 billion | Q3 was $460 billion.

Block reported that in Q4, through Cash App, it achieved $19.6 billion in Bitcoin sales, generating $46 million in gross profit, slightly higher than the $18.2 billion and $42 million in Q3.

For the full year of 2021, there was over $100 billion in Bitcoin sales, with approximately $2.18 billion in gross profit, representing a growth of 119% and 124% compared to 2020.

The financial report emphasizes that in the coming quarters, Bitcoin revenue and gross profit will fluctuate due to customer demand and Bitcoin prices, and Block's stock price has also slightly risen due to the better-than-expected financial data.