May 5 (Cointime) -  Block, a fintech company, has announced in its Q1 2023 Shareholder Letter that its Cash App unit generated $2.16 billion in revenue from bitcoin sales during Q1. This represents an increase of 18% from the previous quarter's revenue of $1.83 billion, and a 25% increase from Q1 2022. The company considers the total sale amount of bitcoin to customers as revenue.

Additionally, Cash App's bitcoin gross profit for Q1 was $50 million, showing a 43% increase from Q4 and a 16% increase year over year. In total, Block reported a gross profit of $770 million for Q1, which is a 16% increase from the previous year.  

Block did not record any impairment loss on its bitcoin holdings during the first quarter, as the price of bitcoin increased. In the previous quarter (Q4), the company had reported an impairment charge of $9 million on its bitcoin investment, and for the full year of 2022, an impairment charge of $47 million.

"As of March 31, 2023, the fair value of our investment in bitcoin was $229 million based on observable market prices, which was $126 million greater than the carrying value of the investment after cumulative impairment charges." the firm wrote in letter.