Block, the payments company led by Jack Dorsey, saw a significant increase in gross profit from selling Bitcoin through its Cash App. In the fourth quarter, Block reported a gross profit of $66 million, a 90% increase from the previous year. The total sale amount of Bitcoin sold to customers in Q4 was $2.5 billion, a 37% year-over-year increase. The full-year results also showed growth, with Bitcoin revenue reaching $9.5 billion, up 34% from the previous year, and Bitcoin gross profit increasing by 31% to $205 million.
Jack Dorsey, the CEO of Block, stated that Cash App aims to become one of the leading providers of banking services to households earning up to $150,000 per year in the United States. Cash App is a mobile payment service that allows individuals to transfer money through their smartphones or browsers. It enables users to easily buy, sell, send, and receive Bitcoin using their linked cards or cash balances.
In Q4, Cash App generated a total gross profit of $1.18 billion, a 25% year-over-year increase. The growth in Bitcoin revenue and gross profit can be attributed to the increase in the average market price of Bitcoin and the price appreciation of Block’s Bitcoin inventory during the quarter. According to CoinGecko, the company currently holds 8,027 Bitcoin, valued at approximately $413 million.
During an earnings call, Amrita Ahuja, the company’s COO and CFO, highlighted the strong financial performance and exceeded analyst estimates. Block’s gross profit for the period was $2.02 billion, a 22% increase from the same quarter in 2022. The full-year gross profit reached $7.5 billion, a 25% increase from the previous year. The company also reported full-year adjusted EBITDA of $1.79 billion, surpassing its own guidance.
Following the release of Block’s earnings report, its shares surged 5.4%. The company’s impressive financial results reflect the growing demand for Bitcoin and the success of its Cash App.