Block, a fintech company led by Jack Dorsey, recently released its earnings report for the Q3 of 2023, which showed that the company had a profitable quarter and exceeded the expectations of financial analysts.
During the third quarter, Block earned $5.62 billion in revenue due to substantial growth in its Cash App and Square businesses. Around 43% of their revenue during this period came from Bitcoin-related activities.
In a letter to shareholders, Jack Dorsey mentioned, “instituting an initial authorization to repurchase $1 billion in shares, which will offset a portion of dilution from share-based compensation.”
In Q3 2023, the generated gross profit was $1.90 billion, marking a 21% increase compared to the previous year, while Cash App generated a gross profit of $984 million, which was 27% higher than the previous year.
Block reported a Bitcoin gross profit of $45 million, representing a 22% year-over-year increase, as the company sold $2.42 billion worth of BTC to customers through the Cash App. This Bitcoin gross profit constituted 2% of the company’s Bitcoin revenue.
The increase in BTC revenue was attributed to the higher average market price of Bitcoin and the quantity of Bitcoin sold to customers. Block also noted that it had not experienced any impairment losses on its Bitcoin holdings since the previous quarter.