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“Former Twitter CEO Jack Dorsey’s Fintech Firm Block Makes $66 Million in Bitcoin Sales Profit”

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Former Twitter CEO Jack Dorsey’s fintech firm, Block, has reported a significant increase in profits from Bitcoin sales. According to the company’s fourth-quarter 2023 earnings report, Block made $66 million in gross profit on its Bitcoin sales through Cash App, representing a 90% increase compared to the previous year.

The news of Block’s success has had a positive impact on its stock price, with NASDAQ:SQ experiencing a 12.35% rally in after-hours trading. The stock price rose from $67.96 to $76.10 following the release of the earnings report.

The report highlighted that the total sale amount of Bitcoin sold to customers, which is recognized as Bitcoin revenue, reached $2.52 billion, a 37% increase compared to the previous year. This growth in revenue and profit can be attributed to the rise in the average market price of Bitcoin and the appreciation of Block’s Bitcoin inventory during the quarter.

Block’s investment in Bitcoin has proven to be fruitful. The company invested $50 million and $170 million in Bitcoin in late 2020 and early 2021, respectively. By the end of 2023, Block held 8,038 Bitcoins on its balance sheets, worth around $340 million at the time. With the current value of Bitcoin exceeding $400 million, Block has recognized a gain of $207 million from this investment as of December 2023.

A significant portion of Block’s Bitcoin sales were conducted through its mobile Cash App. In 2023, the app generated $205 million in Bitcoin gross profit and $9.50 billion in Bitcoin revenue, marking a 31% and 34% increase year over year, respectively. Jack Dorsey emphasized the importance of easy and reliable banking features that users can trust, stating that Cash App aims to be seen as a dependable platform for managing money and receiving direct deposits.

In terms of overall revenue, Block experienced a growth of 33.54% in the fiscal year ending December 31, 2023. Revenues increased from $7,112,856 to $9,498,302. However, when comparing 2022 to 2021, revenues had fallen by 28.96% a year ago, from $10,012,647 to $7,112,856.

Block’s previous earnings report in November had already shown positive results, leading to a 20% increase in stock price. During that quarter, the company’s total net revenue reached $5.62 billion, with $2.42 billion coming from the Cash App.

While the earnings call primarily focused on the success of the Cash App, Jack Dorsey also highlighted the increasing role of artificial intelligence (AI) in future financial services. Dorsey believes that AI will have a significant impact on productivity and innovation within the industry. He emphasized how AI allows for faster learning, shipping, and error correction, enabling companies to stay ahead of the market.

Block’s success in Bitcoin sales and its overall revenue growth demonstrate the company’s ability to adapt and thrive in the ever-evolving fintech industry. With a strong focus on user trust and innovative technologies like AI, Block is well-positioned to continue its upward trajectory in the coming years.

In conclusion, Block’s fourth-quarter earnings report revealed impressive profits from Bitcoin sales through its Cash App. The company’s gross profit of $66 million represents a substantial increase compared to the previous year. With a strong emphasis on user trust and the integration of AI in financial services, Block is poised for continued success in the fintech industry.

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