Jack Dorsey’s Block Posts 90% Boost in Bitcoin Gross Profits in Q4
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In its Q4 earnings report, fintech company Block, led by Jack Dorsey, revealed a remarkable gain of $207 million on its Bitcoin holdings. As of December 31, 2023, Block held around 8,038 BTC valued at $340 million. The company’s earning report highlighted a significant increase in Bitcoin revenue, totaling $2.52 billion, a 37% year-over-year rise. This surge in revenue was linked to the rising price of Bitcoin and the appreciation of Block’s Bitcoin inventory during Q4. Hence, Block made a big gross profit of $66 million from selling Bitcoins in the last quarter.
Cash App’s Bitcoin Sales Maneuover
It is during this period, Cash App, a mobile payment platform owned by Block, reported a significant increase in profits from bitcoin sales, reaching $66 million, marking a 90% growth compared to the previous year. This contributed to Block’s overall performance, with the company recording $2.52 billion in total Bitcoin sales to customers, reflecting a 37% year-on-year increase.
Plus, Block gained $207 million from the appreciation of its Bitcoin holdings, with the company holding around 8,038 Bitcoins valued at approximately $340 million by the end of the year. The increase in bitcoin revenue and gross profit was attributed to the rise in the average market price of bitcoin and the appreciation of Block’s bitcoin inventory during the quarter.
Market Responded Fairly
Overall, Block’s financial services platform, Square, also went up with a whooping gross profit of $828 million, up 18% year-over-year, while Cash App generated $1.18 billion in gross profit, representing a 25% year-on-year growth. As a whole, Block generated $2.03 billion in gross profits in Q4, reflecting a 22% year-over-year increase.
Furthermore, Block reported a net income attributable to stockholders of $178 million in the fourth quarter of 2023, up from $114 million in 2022. Block’s net income was $10 million in 2023, up from $541 million in 2022.
The positive financial performance of both Square and CashApp led to a surge in Block’s shares, which closed up 5.41% on Thursday and further increased by 13.23% in after-hours trading.
