In a stellar performance driven by surging Bitcoin sales, Jack Dorsey-led payments firm Block reported impressive earnings for the fourth quarter, with gross profit from Bitcoin sales through its Cash App soaring to $66 million, marking a staggering 90% increase from the previous year.
According to Block’s earnings report released on Feb. 22, the total sale amount of Bitcoin to customers, depicted as Bitcoin revenue, reached $2.5 billion in Q4, marking a notable 37% year-over-year increase. Full-year results echoed this growth trend, with Bitcoin revenue hitting $9.5 billion, up by 34% year-on-year, while Bitcoin’s gross profit surged by 31% to $205 million.
Jack Dorsey, CEO of Block, emphasized Cash App’s ambition to become a top provider of banking services for households earning up to $150,000 annually. Cash App, a mobile payment service, facilitates seamless money transfers via smartphones or browsers, offering users the ability to easily buy, sell, send, and receive Bitcoin using linked cards or cash balances.
In Q4, Cash App generated a total gross profit of $1.18 billion, representing a significant 25% year-over-year increase. The rise in Bitcoin revenue and gross profit can be attributed to the uptrend in the average market price of Bitcoin, coupled with the price appreciation of Block’s Bitcoin inventory during the quarter.
Block currently holds 8,027 BTC, valued at approximately $413 million based on current market prices, as per CoinGecko data.
During the fourth-quarter earnings call, Amrita Ahuja, Block’s Chief Operating Officer and Chief Financial Officer, highlighted the improvement in Bitcoin gross profit, driven by pricing changes implemented during the quarter.
Following the release of its earnings report, shares in Block surged by 5.4%, surpassing analyst estimates.
Block recorded a gross profit of $2.02 billion for the quarter, marking a 22% increase from the same period in 2022. Its full-year gross profit for 2023 reached $7.5 billion, representing a notable 25% uptick from the previous year.
Furthermore, the firm reported full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.79 billion, exceeding its guidance range of $1.66 billion to $1.68 billion.
Block’s robust performance underscores the growing significance of Bitcoin sales through Cash App, positioning the company for continued growth and market leadership in the evolving landscape of digital payments and cryptocurrency integration.
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