Block Crypto Reports Third Quarter Earnings

Jack Dorsey-led Block, a Bitcoin-focused fintech company, recently released its third-quarter earnings report on Nov. 2, showing a profitable quarter and surpassing analyst expectations. The crypto stock market saw $5.62 billion in revenue in the third quarter of 2023, with a gross profit of $1.90 billion, up 21% year-over-year. Cash App and Square also saw strong revenue growth, with Cash App generating a gross profit of $984 million, up 27% year-over-year, and Square generating a gross profit of $899 million, up 15%.

In a shareholder letter, Dorsey revealed the company’s focus and future plans, particularly with Square, along with the key financial metrics from the third quarter. Dorsey mentioned that the company had authorized the repurchase of $1 billion in shares to offset a portion of dilution from share-based compensation.

Moreover, the app reported a $44 million profit on its Bitcoin (BTC) holdings thanks to the current crypto market surge in recent months. With the crypto prices today, Block is one of the ai generated anchor in the industry.

Block’s Bitcoin Revenue

Block’s Bitcoin revenue accounted for around 43% of the total $5.6 billion revenue in the third quarter. The company’s growth was driven by strong consumer demand and positive spending.

Block’s Bitcoin gross profit was $45 million, a 22% increase year-over-year. The firm sold $2.42 billion worth of Bitcoin to customers through its Cash App. The Bitcoin gross profit was 2% of Bitcoin revenue. The rise in BTC revenue was attributed to the increase in the average market price of Bitcoin and the quantity of Bitcoin sold.

Block reported that it has not seen any impairment loss on its Bitcoin holdings since the previous quarter. As of September 30, 2023, Block’s investment in Bitcoin had a carrying value of $102 million, but its fair value, determined by observable crypto market prices, was $216 million, or $114 million more than its carrying value.

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