Block, led by CEO Jack Dorsey, announced $66 million in gross profit from selling Bitcoin through its Cash App in the fourth quarter of last year.
This marks a 90% increase from the previous year, according to the company’s earnings report released on Feb. 22.
Block’s Bitcoin Revenue Soars to $2.5 Billion
The report revealed that Block’s total Bitcoin revenue for the fourth quarter amounted to $2.5 billion, reflecting a 37% increase year-over-year.
Similarly, full-year results showcased growth, with Bitcoin revenue reaching $9.5 billion, up 34% from the previous year. Bitcoin’s gross profit also surged by 31% to $205 million.
The surge in Bitcoin revenue and gross profit can be attributed to several factors, including an increase in the average market price of BTC and the favorable appreciation of Block’s BTC inventory during the quarter.
During late 2020 and early 2021, Block made $50 million and $170 million in Bitcoin investments, respectively. By the close of 2033 the company holds 8,027 BTC valued at approximately $413 million, according to data from CoinGecko.
Cash App, a mobile payment service, facilitates seamless transactions, allowing users to easily buy, sell, send, and receive Bitcoin through their smartphones or browsers.
“Cash App aims to become one of the top providers of banking services to households in the United States which earn up to $150,000 per year,” CEO Jack Dorsey stated.
As of December 31, the company disclosed adjusted earnings per share of 22 cents on revenue totaling $4.65 billion. This differed from analyst predictions of 30 cents EPS and $4.63 billion in Revenue.
Jack Dorsey’s Bitcoin Ventures
Since 2018, Jack Dorsey has been a vocal advocate for Bitcoin, integrating it into Cash App’s services and making significant investments in cryptocurrency. Dorsey’s initiatives extended beyond conventional Bitcoin trading.
Block subsidiary TBD announced plans for a decentralized Bitcoin trading exchange, while the company ventured into developing a new wallet to enable customers to hold Bitcoin directly. Block also invested in a Bitcoin mining firm to provide affordable energy solutions to regions like Kenya and Malawi.
Investors responded positively to Block’s earnings report, with the company’s shares surging by 5.41%. Block’s total gross profit for the quarter amounted to $2.02 billion and $7.5 billion for the year, surpassing expectations. The company also exceeded its projected adjusted EBITDA, reporting $1.79 billion against the forecasted range of $1.66 billion to $1.68 billion.
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