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Jack Dorsey’s Fintech Firm Block Boasts 90% Profits from Bitcoin in Q4 2023

Block reports $66 million in gross profit from selling Bitcoin via CashApp

Block, under the leadership of tech visionary Jack Dorsey, announced a remarkable 90% increase in Bitcoin gross profits for the fourth quarter of 2023. The surge, primarily fueled by transactions through its flagship mobile payment service, Cash App, underscored the company's dominant position in the cryptocurrency market. With a gross profit of $66 million from Bitcoin sales, Block not only capitalized on the crypto economy but also significantly outpaced its performance from the previous year.

The earnings report, unveiled on February 22, revealed that Bitcoin revenue through Cash App soared to $2.5 billion, marking a 37% year-over-year increase. This growth was not an isolated event; the company's full-year figures told a similar story of prosperity. Bitcoin revenue reached an astounding $9.5 billion, up 34%, with gross profit escalating by 31% to $205 million. 

Such metrics not only illustrate Block's robust engagement with digital currency but also its strategic prowess in nurturing profitability amidst a fluctuating market landscape.

Cash App: a catalyst for cryptocurrency engagement

Cash App, the mobile payment solution at the forefront of Block's cryptocurrency initiatives, has emerged as a pivotal player in democratizing Bitcoin transactions. Facilitating the effortless purchase, sale, and transfer of Bitcoin, Cash App has not only simplified cryptocurrency for everyday users but has also significantly contributed to Block's financial success. In the fourth quarter of 2023 alone, Cash App was responsible for generating a gross profit of $1.18 billion, marking a 25% increase from the year prior. 

Cash App extends beyond its user-friendly interface; its strategic integration within Block's ecosystem has enabled the company to harness the volatility of Bitcoin prices to its advantage. With an inventory of 8,027 BTC valued at approximately $413 million, Block's strategic market positioning has allowed it to reap rewards from price appreciation, further bolstering its financial standing.

Amrita Ahuja, Block's COO and CFO, attributed the quarter's success to strategic pricing changes and an overall increase in Bitcoin gross profit.

Amrita Ahuja:

“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.”