San Francisco, CA – Block, the financial technology company led by former Twitter CEO Jack Dorsey, reported a significant increase in Bitcoin sales through its Cash App platform. The company’s fourth-quarter 2023 earnings showed a gross profit of $66 million from Bitcoin sales, representing a 90% increase from the previous year.
According to the report released by Block, the total sale amount of Bitcoin to customers was $2.52 billion, marking a 37% increase year over year. The company attributed this growth to an increase in the average market price of Bitcoin and the appreciation of its Bitcoin inventory during the quarter.
Block also revealed that it had invested significant amounts in Bitcoin in late 2020 and early 2021, holding 8,038 Bitcoins worth around $340 million on its balance sheets by the end of 2023. The firm reported recognizing a $207 million gain from this investment as of December 2023, as the value of Bitcoin increased to over $400 million.
The company emphasized the role of its mobile Cash App in driving Bitcoin sales, with $205 million in Bitcoin gross profit and $9.50 billion of Bitcoin revenue generated in 2023, representing a 31% and 34% increase year over year, respectively.
In addition to the financial outcomes, Block saw an increase in its total revenues for the fiscal year 2023, reaching $9,498,302, reflecting a 33.54% growth compared to the previous year. However, the company experienced a 28.96% decrease in revenues from 2022 to 2021.
Following the release of the earnings report, Block’s stock price surged by 12.35% in after-hours trading, indicating positive investor sentiment towards the company’s performance. This boost in stock price follows a similar pattern from Block’s third-quarter earnings report, which also resulted in a significant increase in stock value.
Amid the focus on financial results, Jack Dorsey emphasized the increasing role of artificial intelligence in shaping the future of financial services, highlighting the potential impact of AI in driving productivity and innovation within the company.
Block’s impressive performance in Bitcoin sales and overall revenue growth underscores the company’s strong position in the competitive fintech industry, positioning it for further success in the future.