Jack Dorsey’s Block Reports 90% Increase in Bitcoin Gross Profits during Q4

Block, the fintech company led by Jack Dorsey, announced impressive earnings in its Q4 report, with a gain of $207 million from its Bitcoin holdings. As of December 31, 2023, Block held approximately 8,038 BTC valued at $340 million. The report highlighted a significant increase in Bitcoin revenue, reaching $2.52 billion, a 37% rise compared to the previous year. This surge in revenue was attributed to the rising price of Bitcoin and the appreciation of Block’s Bitcoin inventory during the fourth quarter, resulting in a gross profit of $66 million from Bitcoin sales.

During this period, Cash App, Block’s mobile payment platform, reported a substantial increase in profits from Bitcoin sales, reaching $66 million, a growth of 90% compared to the previous year. This contributed to Block’s overall performance, as the company recorded $2.52 billion in total Bitcoin sales to customers, reflecting a 37% year-on-year increase.

Moreover, Block gained $207 million from the appreciation of its Bitcoin holdings, with the company holding approximately 8,038 Bitcoins valued at around $340 million by the end of the year. The increase in Bitcoin revenue and gross profit was attributed to the rise in the average market price of Bitcoin and the appreciation of Block’s Bitcoin inventory during the quarter.

The market responded positively to Block’s financial services platform, Square, which saw a significant gross profit of $828 million, an 18% year-on-year increase. Cash App also performed well, generating $1.18 billion in gross profit, representing a 25% year-on-year growth. Overall, Block generated $2.03 billion in gross profits in Q4, reflecting a 22% year-over-year increase.

Furthermore, Block reported a net income attributable to stockholders of $178 million in the fourth quarter of 2023, up from $114 million in 2022. The net income for Block was $10 million in 2023, up from $541 million in 2022.

The positive financial performance of both Square and Cash App led to a surge in Block’s shares, which closed up 5.41% on Thursday and further increased by 13.23% in after-hours trading.