Block’s Bitcoin Profits Soar to $207M, Boosted by Cash App

1. Block, led by Jack Dorsey, reports a 90% YoY increase, making $66 million in gross profit from Bitcoin sales through its Cash App in Q4 2023.
2. Block’s $50 million and $170 million investments in late 2020 and early 2021 result in holding 8,038 Bitcoins.
3. Bitcoin sales contribute to Cash App’s $205 million Bitcoin gross profit and $9.50 billion Bitcoin revenue in 2023.

Block, led by Jack Dorsey, reported a substantial increase in Bitcoin gross profit through its Cash App, contributing to a 90% year-over-year rise.

The fourth-quarter 2023 earnings report revealed a $66 million gross profit on Bitcoin sales, prompting a significant surge in Block’s stock price during after-hours trading.

Bitcoin Sales Surge

Block’s Bitcoin revenue witnessed a notable surge, reaching $2.52 billion, reflecting a 37% year-over-year increase. The report attributes this growth to the rising average market price of Bitcoin and the appreciation of Block’s Bitcoin inventory during the quarter.

Block’s strategic investments in Bitcoin, totaling $50 million and $170 million in late 2020 and early 2021, respectively, resulted in the firm holding 8,038 Bitcoins by the end of 2023.

With the current value exceeding $400 million, Block recognized a $207 million gain from this investment as of December 2023.

Mobile Cash App Impact

A significant portion of Bitcoin sales occurred through mobile devices.

The Block’s Cash App generates $205 million in Bitcoin gross profit and $9.50 billion in Bitcoin revenue in 2023.

This marks a 31% and 34% year-over-year increase, emphasizing the app’s impact on Block’s overall performance.

Financial Growth and Future Focus

For the fiscal year 2023, Block’s revenues surged to $9,498,302, a substantial 33.54% growth compared to the previous year.

While 2022 to 2021 revenues fell by 28.96%, the recent surge indicates a strong recovery.

Jack Dorsey, during the earnings call, highlighted the increasing role of AI in future financial services.

“[AI] is going to be extremely impactful for us as we look at everything that we’re doing, and all the tools that we’re building and how much more productive,” 

Jack Dorsey

Block’s stock experienced a 12.35% increase in after-hours trading, reaching $76.10 from $67.96 at the market’s close.
This positive market response reflects investor confidence in Block’s strategic approach and the impressive performance of its Bitcoin-related activities.