Back to the list

Bitcoin Bets Yield $207M in Gains For Jack Dorsey’s Block

source-logo  coindesk.com 23 February 2024 08:16, UTC

In its fourth-quarter earnings report released Thursday, Fintech company Block reported a remeasurement gain of $207 million on its bitcoin (BTC) holdings.

As of Dec. 31, 2023, Block held approximately 8,038 BTC for investment purposes with a fair value of $340 million.

The Jack Dorsey-owned company made $66 million in gross profit on bitcoin sales last quarter through Cash App, a banking services platform, representing a 90% increase year over year.

“The total sale amount of Bitcoin sold to customers—which we recognize as Bitcoin revenue—was $2.52 billion, up 37% year over year,” the report said. “The year-over-year increase in Bitcoin revenue and gross profit was driven by an increase in the average market price of Bitcoin as well as a benefit from the price appreciation of our Bitcoin inventory during the quarter.”

Shares of Block (NASDAQ: SQ) are up 13% in after-hours trading to $76, data shows. Overall, Block reported its gross profit grew 22% yearly to $2.03 billion. Square generated a gross profit of $828 million, up 18% year over year, and Cash App generated a gross profit of $1.18 billion, up 25% year over year.