November 6, 2023

Block, Led by Jack Dorsey, Reports $5.62 Billion in Q3 Revenue and $44 Million Profits from Bitcoin

Block, under the leadership of Jack Dorsey, showcased a robust performance in its third-quarter earnings report, boasting $5.62 billion in revenue and $44 million in profits stemming from its bitcoin holdings.

In its third-quarter earnings report, the Bitcoin-focused fintech company helmed by Jack Dorsey, Block, surpassed analyst predictions by a wide margin, revealing a quarter marked by profitability and growth.

The $5.62 billion in revenue for the third quarter of 2023 was predominantly influenced by robust expansion in both Cash App and Square, leading to a $44 million profit from its bitcoin holdings, which surged due to recent price spikes in BTC.

Dorsey, in a shareholder letter, emphasized the company's strategic direction and forthcoming plans, particularly concerning Square, while highlighting key financial metrics from the third quarter. Block also announced an authorization for the repurchase of $1 billion in shares to offset the dilution from share-based compensation.

During the same period, Block experienced a 21% year-over-year increase in gross profit, amounting to $1.90 billion. Cash App, the mobile payment service, saw a 27% year-over-year increase, generating a gross profit of $984 million, while Square yielded a 15% increase in gross profit, reaching $899 million.

Bitcoin revenue played a pivotal role, constituting approximately 43% of Block's $5.6 billion in revenue. The company's growth was significantly bolstered by strong consumer demand and increased spending in the fintech sector.

Block's bitcoin gross profit saw a 22% increase year-over-year, amounting to $45 million, with the company selling $2.42 billion worth of BTC to customers via Cash App. This bitcoin gross profit accounted for 2% of bitcoin revenue. Block attributed the rise in BTC revenue to an upsurge in the average market price of bitcoin and an increase in the quantity of bitcoin sold to customers.

The company stated that it hadn't encountered any impairment loss on its bitcoin holding since the prior quarter. As of September 30, 2023, Block's investment in bitcoin was valued at $102 million, but its fair market value, determined by observable market prices, stood at $216 million, marking a $114 million surplus over its carrying value.

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