Jack Dorsey's Block Reports Strong Q3 Earnings

Jack Dorsey’s company, Block, a Bitcoin-focused fintech company, released its third-quarter earnings report, exceeding analyst expectations and showcasing a profitable quarter. In Q3 2023, the company reported $5.62 billion in revenue, largely driven by solid growth in its Cash App and Square businesses. The firm also achieved $44 million in profit from its Bitcoin holdings due to the recent surge in Bitcoin’s price.

Block generated a gross profit of $1.90 billion during the third quarter, marking a 21% year-over-year increase. Cash App, the mobile payment service, contributed $984 million in gross profit, a 27% year-over-year growth. Square, another division of Block, contributed $899 million in gross profit, representing a 15% increase.

Approximately 43% of Block’s $5.6 billion in revenue was attributed to Bitcoin-related revenue, reflecting the company’s strong consumer demand and positive spending trends.

Block’s Bitcoin gross profit reached $45 million, a 22% increase compared to the previous year. The company sold $2.42 billion worth of Bitcoin to customers through Cash App, and its Bitcoin gross profit represented 2% of its Bitcoin revenue. Block also noted that it did not incur any impairment losses on its Bitcoin holdings.

As of September 30, 2023, Block’s investment in Bitcoin had a carrying value of $102 million, but its fair value, based on observable market prices, stood at $216 million, indicating a $114 million increase over its carrying value. The company’s shareholder letter also highlighted its $1 billion share repurchase authorization to offset share-based compensation dilution.

Jack Dorsey emphasized the company’s focus and future plans, particularly with Square, in the shareholder letter.

By Urik

My professional background is in public relations and I am the founder of Cryptochating. My journey into blockchain technology started four years ago, and I haven't looked back since then. The future of decentralized technology is incredibly fascinating to me, and I am passionate about communicating how it will change the world.

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