Cryptocurrency News

Jack Dorsey’s Block Boosts Bitcoin Gross Profit by 90 Percent

Cash App generated a gross profit of $66 million from Bitcoin sales in Q4 2023, marking a 90% increase compared to the previous year. Led by Jack Dorsey, Block reported this significant growth in their earnings report released on February 22, where the total Bitcoin sales to customers (reflected as Bitcoin revenue) reached $2.5 billion, showing a 37% increase year-over-year for Q4.

The annual results mirror this growth trend, with Bitcoin revenue hitting $9.5 billion, up 34% year-on-year, while Bitcoin gross profit increased by 31% to $205 million. Dorsey, CEO of Block, stated that Cash App aims to become a leading banking service provider for U.S. families earning annually up to $150,000. Cash App allows users to effortlessly buy, sell, send, and receive Bitcoin using linked cards or cash balances through their smartphone or web browser.

Meanwhile, Cash App’s total gross profit for Q4 was $1.18 billion, a 25% increase from the previous year. The rise in Bitcoin income and gross profit was attributed to the average market price increase of BTC during the quarter, as well as profits from the rising price of BTC inventory held during the period. According to CoinGecko, the company owns approximately 8027 bitcoins valued around $413 million at current market prices. Amrita Ahuja, the company’s COO and CFO, mentioned in an earnings call that the improvement over Q3 was influenced by several factors, including the gross Bitcoin profit boost due to pricing changes implemented during the quarter. Block’s shares surged by 5.4% following the earnings report, surpassing analysts’ estimates.

Block recorded a gross profit of $2.02 billion for the period, a 22% increase compared to the same quarter in 2022, and its gross profit for the entire year of 2023 was $7.5 billion, 25% higher than the previous year. The company reported an adjusted annual EBITDA of $1.79 billion, exceeding its guidance of $1.66 to $1.68 billion.

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