Block, the fintech company led by Jack Dorsey, former CEO of Twitter, reported a 90% increase year over year in gross profit from Bitcoin sales via Cash App, making $66 million in the last quarter. The company’s earnings report for the fourth quarter of 2023, released on Thursday, contributed to a 12.35% stock price rally for NASDAQ:SQ, reaching $76.10 in after-hours trading. Block attributed the increase in Bitcoin revenue and gross profit to the rise in the average market price of Bitcoin and a benefit from the price appreciation of their Bitcoin inventory during the quarter.
Furthermore, Block invested $50 million and $170 million in Bitcoin in late 2020 and early 2021, respectively, and held 8,038 Bitcoins—worth around $340 million—on its balance sheets by the end of 2023. The company recognized a $207 million gain from this investment as of December 2023, with the value of the Bitcoins reaching well above $400 million. Additionally, a significant portion of the Bitcoin sales was made through its mobile Cash App, generating $205 million in Bitcoin gross profit and $9.50 billion of Bitcoin revenue in 2023, reflecting a year-over-year increase. Looking to the future, CEO Jack Dorsey emphasized the increasing role of artificial intelligence in future financial services and the company’s focus on building trust and reliability through Cash App.
In its fiscal year ending December 31, 2023, Block’s revenues increased by 33.54%, reaching $9,498,302, compared to the previous year. However, there was a 28.96% decrease in revenues when comparing 2022 to 2021. Overall, the company’s continued growth in Bitcoin sales, investment gains, and revenue from the Cash App reflect a positive upward trajectory for Block.