Jack Dorsey-led payments company Block forecast fourth quarter 2023 in its latest earnings report Bitcoin recorded strong growth in sales and profits. The company sold $2.52 billion worth of BTC to customers in the last quarter of 2023, a 37% increase compared to the same period of the previous year. He also made a $207 million gain on his BTC assets, which were revalued due to the rise in the price of the cryptocurrency. Block owned 8,038 BTC tokens at the end of 2023, worth approximately $340 million at the time.
The increase in revenue and gross profit on BTC assets is due to the increase in the average market price as well as the price appreciation of Bitcoin inventory during the quarter.
As Koinfinans.com reported, the company’s mobile payment platform Cash App made a significant contribution to its Bitcoin revenue and gross profit. In the fourth quarter of 2023, Cash App generated $66 million in bitcoin gross profits, an increase of 90% compared to the same period in the previous year. Cash App allows users to buy, sell and store bitcoin easily and securely and has over 40 million monthly active users as of December 2023.
Block’s overall financial performance was also impressive. The company’s net income attributable to shareholders was $178 million, compared to a net loss of $114 million in the same quarter the previous year. Total net income increased by 64% compared to the previous year, reaching 5.6 billion dollars. Block’s net income for 2023 was $10 million, compared to a net loss of $541 million in the previous year.
Investors reacted positively to the company’s earnings report, with Block’s shares closing up 5.41% on Thursday and gaining another 13.23% in after-hours trading. Block’s market cap was around $140 billion as of Friday morning.
The company, which changed its name from Square to Block in December 2023, is known for its vision of creating a pioneering financial system in the crypto field. CEO Jack Dorsey is also the co-founder and CEO of Twitter and is a strong advocate of bitcoin. Dorsey believes that bitcoin will become the native currency of the internet and is directing his resources heavily towards bitcoin development.
