Jack Dorsey-Led Block Witness High Profits on Bitcoin Sales Via Cash App
Block, a payment platform led by ex-Twitter boss Jack Dorsey, has made enormous Bitcoin gross profits in Q4 2023. Block earned $66 million from selling Bitcoin through Cash App, the firm’s recent Q4 2023 earnings report noted.
The fintech firm’s gross profit is a 90% increase year over year, it said. Released Thursday, Block’s earnings report prompted a stock price rally up 12.35% in after-hours trading for Nasdaq.
Per the report, the total sale amount of Bitcoin sold to customers was $2.52 billion, up 37% year over year.
“The year-over-year increase in Bitcoin revenue and gross profit was driven by an increase in the average market price of Bitcoin as well as a benefit from the price appreciation of our Bitcoin inventory during the quarter.”
For the entire year of 2023, Cash App generated $205 million of Bitcoin gross profit, up 31% year over year. Block, formerly known as Square, launched bitcoin trading on Cash App in 2018.
As reported earlier, the crypto-embracing Cash App saw over 1 million first time customers purchasing Bitcoin in January 2023. Later in October, the mobile payments app integrated Bitcoin Lightning Network, a layer 2 scaling solution for cryptocurrency’s scalability issues.
Further, the earnings report to shareholders noted that more users are opting to use Cash App Cards.
“We see the Cash App Card as a gateway to our customers adopting Cash App as a primary banking solution,” it said.
In December alone, the company recorded a 20% jump in Cash App Card monthly active users to 23 million. This is more than twice the growth rate of total monthly actives.
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