Block, the payments company helmed by Jack Dorsey, has reported significant growth in its bitcoin sales, with total sales amounting to $2.52 billion in the fourth quarter of 2023, representing a robust 37% increase compared to the previous year. This information was disclosed in Block’s latest earnings report released on Thursday.
The earnings report also revealed that Block experienced a $207 million gain in remeasured bitcoin holdings during the same period. At the end of last year, the company held approximately 8,038 bitcoin, valued at around $340 million at the time.
According to Block’s report, the year-over-year surge in bitcoin revenue and gross profit was attributed to the rising average market price of bitcoin, as well as the appreciation in the price of the company’s bitcoin inventory throughout the quarter.
In Q4 of 2023, Block’s mobile payment platform Cash App saw a substantial increase in profit, generating $66 million from bitcoin sales, marking a remarkable 90% growth compared to the previous year.
Furthermore, Square, Block’s financial services platform catering to small to medium-sized businesses, reported a gross profit of $828 million, indicating an 18% year-over-year increase. Meanwhile, Cash App achieved a gross profit of $1.18 billion, demonstrating a solid 25% year-on-year growth. Overall, Block recorded a total gross profit of $2.03 billion in the fourth quarter, reflecting a notable 22% year-over-year increase.
During the fourth quarter of 2023, Block posted a net income attributable to stockholders of $178 million, marking a significant improvement from the net loss of $114 million incurred in the same period of 2022. Furthermore, the company’s net income for the entire year of 2023 totaled $10 million, a notable contrast to the net loss of $541 million recorded in 2022.
Following the release of the earnings report, Block’s shares surged by 5.41% during regular trading hours on Thursday and further increased by 13.23% in after-hours trading.