Block's Bitcoin Sales via Cash App Generate $66M Gross Profit, up 90% Yearly
Summary:
Block, led by CEO Jack Dorsey, reported a gross profit of $66 million from Bitcoin sales made via the Cash App, a 90% increase compared to the previous year. With Bitcoin revenue standing at $9.5 billion, up 34% year-on-year, and the gross profit from Bitcoin rising by 31% to $205 million, growth has been steady. The company currently has 8,027 BTC valued at $413 million. Furthermore, the company's shares increased by 5.4% after its earnings report surpassed analyst estimates.
Under the leadership of Jack Dorsey, payment platform Block generated a remarkable $66 million in gross profits from Bitcoin sales via the Cash App, marking an impressive increase of 90% compared to the previous year. Block unveiled its Q4 earnings report on February 22, revealing a total Bitcoin revenue of $2.5 billion, a 37% surge year-on-year. Similarly, the annual results reflect this growth trend, with Bitcoin revenue reaching $9.5 billion, an increase of 34% compared to the previous year. The gross profit from Bitcoin also rose by 31% to $205 million.
Jack Dorsey, Block's CEO, stated that the company aspires for the Cash App to rank among the leading banking service providers catering to American households earning up to $150,000 yearly. The Cash App is a mobile-based payment solution that facilitates the sending and receiving of monetary transactions using smartphones or web browsers. It allows users to connect their cards or cash accounts and enables seamless buy and sell operations using BTC.
In Q4, the Cash App hauled in a total gross profit of $1.18 billion, a yearly increase of 25%. This growth in Bitcoin revenue and gross profit is largely credited to the escalating average market price of BTC and the appreciation of the company’s BTC inventory value during the quarter.
Presently, the company possesses 8,027 BTC, valued at around $413 million based on current market rates, as per CoinGecko information. During the Q4 earnings call, the company's COO and CFO, Amrita Ahuja, stated that the uplift from Q3 was catalyzed by multiple factors, including an increase in Bitcoin gross profit due to pricing shifts made during the period.
Shares of Block experienced a 5.4% rise subsequent to the release of its earnings report, which surpassed analysts' projections. Block's gross profit for the quarter clocked at $2.02 billion, a 22% spike compared to Q4 2022, while its total gross profit for 2023 hit $7.5 billion, an uptick of 25% year-on-year. The company declared adjusted full-year EBITDA of $1.79 billion, outperforming its own guidance range of $1.66 billion to $1.68 billion.
Published At
2/23/2024 7:31:54 AM
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