Shares of Block rose more than 11% in extended trading after the payments company reported third-quarter earnings that beat Wall Street’s profit expectations.
Bitcoin-Friendly Company Block’s Financial Data Comes Positive Than Expected
Block announced its gross profit to $1.57 billion, up 38% from $1.13 billion a year ago. This figure exceeded Wall Street’s expectations of $1.53 billion.
The company, formerly known as Square, said in a letter to shareholders that its company has shown strong growth despite other payments companies warning of impending slowdowns due to macroeconomic effects.
According to Block, Cash App company reported a gross profit of $774 million, a 51% increase from the previous year. The company said that there were more than 18 million people actively using the Cash debit card in September, a 40% increase compared to the previous year.
Analysts have small margins bitcoin and because it has pay-now-it-now businesses, Block tends to focus on its gross profits rather than its top results. Block said it earned $37 million from Bitcoin sales during the quarter, with $1.76 billion in gross sales.
Block said it recorded a $2 million Bitcoin impairment loss during the quarter on Bitcoin it bought in late 2020 and early 2021. The company still holds $156 million worth of Bitcoin, according to its price at the end of September.
In other words, the Bitcoin assets in the hands of Block remain the same.
*Not investment advice.
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