San Francisco, CA – Fintech company Block has reported significant gains in its bitcoin holdings in its latest earnings report. The report, released Thursday, revealed a remeasurement gain of $207 million on the company’s bitcoin holdings as of December 31, 2023. Block currently holds approximately 8,038 BTC for investment purposes with a fair value of $340 million.
Owned by Jack Dorsey, the company made $66 million in gross profit on bitcoin sales through its Cash App platform last quarter, representing a 90% increase year over year. The sales amounted to $2.52 billion, a 37% increase year over year. The increase in bitcoin revenue and gross profit was attributed to an increase in the average market price of bitcoin and a benefit from the price appreciation of Block’s bitcoin inventory during the quarter.
Following the release of the earnings report, shares of Block (NASDAQ: SQ) surged 13% in after-hours trading to $76. Overall, the company reported a 22% yearly growth in gross profit to $2.03 billion. Square, a subsidiary of Block, generated a gross profit of $828 million, up 18% year over year, while Cash App generated a gross profit of $1.18 billion, up 25% year over year.
The strong performance of Block’s bitcoin holdings and its subsidiaries’ gross profits indicate a momentum that the company has been able to sustain in the increasingly competitive fintech industry. This growth is in line with the broader trend of increasing adoption and acceptance of cryptocurrencies in the mainstream financial sector. As Block continues to capitalize on the popularity of bitcoin and its related services, it is poised to remain a key player in the evolving digital finance landscape.