Block, the payments company led by Jack Dorsey, has reported a significant increase in gross profit from its Bitcoin sales. In its fourth-quarter earnings report, Block revealed that it earned $66 million in gross profit from selling Bitcoin through its Cash App, a whopping 90% increase from the previous year. The total sale amount of BTC sold to customers in Q4 was $2.5 billion, a 37% increase year-over-year. For the full year, Bitcoin revenue reached $9.5 billion, up 34% from the previous year, while Bitcoin gross profit increased by 31% to $205 million.
Jack Dorsey, CEO of Block, stated that Cash App aims to become one of the leading providers of banking services to households in the United States with earnings up to $150,000 per year. Cash App is a mobile payment service that allows individuals to transfer money through their smartphones or browsers. Users can easily buy, sell, send, and receive BTC with their linked cards or cash balances. In Q4, Cash App generated a total gross profit of $1.18 billion, a 25% increase year-over-year.
The increase in Bitcoin revenue and gross profit can be attributed to the rise in the average market price of BTC and the price appreciation of Block’s BTC inventory during the quarter. Block currently holds 8,027 BTC, worth approximately $413 million at current market prices.
During the earnings call, Amrita Ahuja, the company’s COO and CFO, explained that the strong performance was driven by the growth in gross profit and exceeded analyst estimates. Block’s gross profit for the period was $2.02 billion, a 22% increase from the same quarter in 2022. The full-year gross profit for 2023 was $7.5 billion, up 25% from the previous year.
Block also reported full-year adjusted EBITDA of $1.79 billion, surpassing its own guidance of $1.66 billion to $1.68 billion.
Following the earnings report, Block’s shares surged 5.4%. The company’s strong performance has positioned it as a key player in the cryptocurrency market, and it continues to attract attention from investors and analysts.