Block Inc, led by CEO Jack Dorsey, has reported a substantial 90% surge in Bitcoin-related gross profit through its Cash App platform, totaling $66 million over the past year. Revealed in its fourth-quarter earnings report on February 22nd, the company saw a 37% rise in Bitcoin sales revenue, reaching $2.5 billion when compared to the prior year. This performance marks a robust trend in the company’s cryptocurrency dealings.
Financial Highlights from Block’s Earnings
The company’s annual figures mirror this positive trend, with Bitcoin revenue climbing by 34% to reach $9.5 billion and Bitcoin gross profit up by 31% at $205 million. Dorsey highlighted Cash App’s goal to become a leading banking service provider for U.S. households with incomes up to $150,000. Cash App, a mobile payment service, facilitates individual investors to transact and manage Bitcoin with ease, contributing to the company’s fourth-quarter gross profit of $1.18 billion, a 25% increase year over year.
Bitcoin Performance Fuels Block’s Growth
The escalation in Bitcoin revenue and profits is attributed to the cryptocurrency’s higher average market price and the valuation of Block’s Bitcoin holdings. According to recent data, Block holds around 8,027 Bitcoins, valued at approximately $413 million. Amrita Ahuja, the company’s finance director, credited the third-quarter recovery to strategic pricing changes, improving Bitcoin gross profit.
The disclosure of these robust earnings led to Block shares rising by 5.4%. For the reported period, Block announced a total gross profit of $2.02 billion, marking a 22% uptick from the corresponding quarter in 2022. The company’s overall gross profit for 2023 was bolstered by 25% to $7.5 billion, with an adjusted EBITDA for the year recorded at $1.79 billion, which outstripped the forecasted range of $1.66 billion to $1.68 billion.