Bitcoin gross profits at Block, led by Jack Dorsey, surge by 90%

Block, the payments firm led by Jack Dorsey, has reported a significant increase in gross profit from its Bitcoin sales. The company earned $66 million in gross profit from selling Bitcoin through its Cash App, marking a 90% increase from the previous year. In its fourth-quarter earnings report, Block revealed that the total sale amount of BTC sold to customers reached $2.5 billion, a 37% year-on-year growth. The full-year results also showed impressive growth, with Bitcoin revenue standing at $9.5 billion, up 34% from the previous year, and Bitcoin gross profit increasing by 31% to $205 million. Block’s CEO, Jack Dorsey, expressed the company’s ambition to become one of the top providers of banking services to households in the US earning up to $150,000 per year. Cash App, the mobile payment service offered by Block, generated a gross profit of $1.18 billion in Q4, a 25% year-on-year increase. The increase in Bitcoin revenue and gross profit is attributed to the rise in the average market price of BTC and the price appreciation of Block’s BTC inventory. Block currently holds 8,027 BTC, valued at approximately $413 million. Following the release of its earnings report, Block’s shares surged 5.4% as it exceeded analyst estimates. The company reported a gross profit of $2.02 billion for the quarter, a 22% increase from the same period in 2022. The full-year gross profit for 2023 amounted to $7.5 billion, a 25% increase from the previous year. Block also surpassed its own guidance for full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by reporting $1.79 billion, beating the guidance range of $1.66 billion to $1.68 billion.