Financial firm Block, Inc. reported a significant profit boost last quarter, largely attributed to its Bitcoin strategy through its Cash App. Led by CEO Jack Dorsey, Block saw its Q4 Bitcoin gross profit surge by 90%, reaching $66 million, over the year.
Block’s fourth-quarter earnings report revealed a substantial increase in Bitcoin revenue, totaling $2.5 billion, a 37% year-over-year growth.
Full-year results showed a similar growth trend, with Bitcoin revenue reaching $9.5 billion, marking a 34% increase year-on-year, while Bitcoin gross profit saw a 31% rise to $205 million.
CEO Jack Dorsey emphasized Cash App’s ambition to become a leading provider of banking services for households in the United States earning up to $150,000 annually.
Cash App, a mobile payment service, generated a total gross profit of $1.18 billion in the fourth quarter, representing a 25% increase year over year.
The growth in Bitcoin revenue and gross profit was attributed to both an increase in the average market price of BTC and a benefit from the price appreciation of Block’s BTC inventory during the quarter.
Block holds approximately 8,027 BTC, valued at around $413 million based on current market prices.
During the earnings call, Block’s CFO noted improvements driven by various factors, including an increase in Bitcoin gross profit from pricing adjustments made during the quarter.
Block reported a gross profit of $2.02 billion for the quarter, marking a 22% increase from the same period in 2022, and a full-year gross profit of $7.5 billion, up 25% from the previous year.
The firm also surpassed its full-year adjusted EBITDA guidance, reporting $1.79 billion, compared to the projected range of $1.66 billion to $1.68 billion.
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