Jack Dorsey-led payment company Block has achieved a significant 90% increase in gross profit from Bitcoin sales through Cash App, reaching $66 million over the previous year. On February 22nd, Block released its earnings report for the fourth quarter, revealing a 37% increase in revenue from total Bitcoin sales to customers compared to the previous year, amounting to $2.5 billion.
Block’s Noteworthy Financial Report
The full-year results also show a similar growth pattern; Bitcoin revenue increased by 34% to $9.5 billion compared to the previous year, while Bitcoin gross profit rose by 31% to $205 million. Block CEO Jack Dorsey commented on the issue:
“Cash App aims to be one of the best providers of banking services to households earning up to $150,000 per year in the United States.”
Cash App offers a mobile payment service that allows individual investors to transfer money through their smartphones or browsers. Cash App enables users to easily buy, sell, send, and receive Bitcoin using their linked cards or cash balances. Meanwhile, Cash App achieved a gross profit of $1.18 billion in the fourth quarter, a 25% increase over the previous year.
Bitcoin’s Rise and Block’s Success
The increase in Bitcoin revenue and gross profit is due to the rise in Bitcoin’s average market price as well as the appreciation of Block’s Bitcoin assets throughout the quarter. According to CoinGecko, the company holds approximately 8,027 Bitcoins valued at around $413 million at current market prices. During the fourth-quarter earnings call, the company’s operating director and finance director Amrita Ahuja said:
“The recovery in the third quarter was due to a number of factors, including the increase in Bitcoin gross profit from pricing changes implemented throughout the quarter.”
Block shares increased by 5.4% after the earnings report exceeded analyst predictions. Block reported a gross profit of $2.02 billion for the period, a 22% increase compared to the same quarter in 2022. The gross profit for the entire year of 2023 was up by 25% to $7.5 billion. The company announced its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the full year at $1.79 billion, surpassing its expectation of between $1.66 billion and $1.68 billion.
