Block: Jack Dorsey makes $66 million in gross profits from selling BTC via Cash App

What’s new? Payment company Block, owned by Twitter co-founder Jack Dorsey, generated $66 million in gross profits from bitcoin sales through its Cash App mobile payment service in Q4 2023. That is a 90% increase from the previous year. The total amount of BTC sold to customers (shown as bitcoin revenue) was $2,5 billion, up 37% from the last reporting period. Dorsey stated that “Cash App aims to become one of the top providers of banking services to households in the United States which earn up to $150 000 per year.”

Block’s report

What else is known? Full-year results show a similar growth pattern, with bitcoin revenue totaling $9,5 billion, up 34% from last year, and BTC gross profit up 31% to $205 million.

Cash App is a mobile payment service that allows individuals to transfer money via smartphones or browsers. Cash App allows users to buy, sell, send, and receive BTC using linked cards or cash balances.

In Q4, Cash App’s total gross revenue was $1,18 billion, up 25% from the previous reported period.

The increase in bitcoin revenue and gross profit was driven by an increase in the average market price of BTC, as well as an increase in the price of Block’s BTC stocks during the quarter. According to CoinGecko, the company owns 8027 BTC worth about $413 million.

During the Q4 earnings call, Amrita Ahuja, the company’s COO and CFO, noted that “Improvement from the third quarter was driven by a number of factors, including an increase in Bitcoin gross profit from pricing changes implemented during the quarter.”

Block’s gross profit was $2,02 billion, a 22% increase over the same quarter in 2022. Gross profit for the full year 2023 was $7,5 billion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the full year was $1,79 billion, beating guidance of $1,66 billion to $1,68 billion.

Shares of Block (SQ) rose 5,4% after the earnings report beat analysts’ estimates.

Jack Dorsey’s Block has developed a prototype ASIC chip for BTC mining

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On February 15, crypto exchange Coinbase also released its 2023 financial report. Thus, in the fourth quarter, total revenue amounted to $954 million, an increase of 41% compared to the previous reporting period. Transaction revenue amounted to $529 million (+83%), profit from subscriptions and services — 375 million (+12%).