FinTech Company Block Reports $207 Million Gain on Bitcoin holdings
Investment in BTC Yields Huge Returns for Block
Overview
In its recently released fourth-quarter earnings report, finTech company Block has announced a significant remeasurement gain of $207 million on its bitcoin (BTC) holdings. This gain is a testament to the company’s wise investment in cryptocurrency.
Bitcoin Holdings and their Value
As of December 31, 2023, Block holds around 8,038 BTC specifically for investment purposes. These holdings currently have a fair value of $340 million, marking a substantial increase in value from the time of purchase.
Impressive Bitcoin Sales Profits for Cash App
Unveiling another exceptional achievement, Block’s subsidiary Cash App – a banking services platform owned by Jack Dorsey – recorded a massive $66 million in gross profit from bitcoin sales during the last quarter. This figure illustrates a phenomenal 90% year-over-year increase.
Significant Revenue Surge in Bitcoin Sales
The recently released earnings report highlighted an outstanding year-over-year increase of 37% in bitcoin revenue, totaling a remarkable $2.52 billion in sales to customers. This increase is attributed to both the rise in bitcoin’s average market price and the appreciation of Block’s bitcoin inventory during the quarter.
Market Response and Company Growth
Following Block’s impressive quarterly performance and the exciting announcement, the company’s shares (NASDAQ: SQ) soared by 13% in after-hours trading, reaching a value of $76. This rise in value showcases the market’s positive perception of Block’s results. Overall, Block reported a 22% growth in gross profit, amounting to a substantial $2.03 billion. Square, Block’s parent company, achieved a gross profit of $828 million (+18% YoY), while Cash App generated $1.18 billion in gross profit (+25% YoY).
[Data source: Yahoo! Finance]