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Jack Dorsey’s Block had $5.62B in revenue, $44M in Bitcoin profits in Q3

Jack Dorsey’s Block had $5.62B in revenue, $44M in Bitcoin profits in Q3

Block, a Bitcoin-focused fintech company led by Jack Dorsey, released its Q3 earnings report on Nov. 2. The report revealed a profitable quarter that exceeded analyst expectations.

During the third quarter of 2023, the company generated $5.62 billion in revenue. The strong growth of Cash App and Square contributed to this figure, and the company made $44 million in profit from its Bitcoin holdings due to recent price surges.

In a shareholder letter, Dorsey discussed the company’s focus and future plans, particularly with Square. He also highlighted the key financial metrics from the third quarter, including the authorization of a $1 billion share repurchase to offset dilution from share-based compensation.

Block achieved a gross profit of $1.90 billion in Q3, representing a 21% year-over-year increase. Cash App, the mobile payment service, generated a gross profit of $984 million, up 27% year-over-year, while Square generated $899 million, a 15% increase.

Block’ Q3 profits. Source: Block

Bitcoin revenue accounted for approximately 43% of Block’s $5.6 billion in revenue. The company’s growth in the third quarter can be attributed to strong consumer demand and positive spending.

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Block’s Bitcoin gross profit reached $45 million, a 22% increase year-over-year. The company sold $2.42 billion worth of BTC to customers via Cash App. Bitcoin gross profit accounted for 2% of Bitcoin revenue. Block attributed the rise in BTC revenue to the higher average market price of Bitcoin and the increased quantity of Bitcoin sold to customers.

The company stated that it did not experience any impairment loss on its Bitcoin holdings since the previous quarter. As of Sept. 30, 2023, Block’s investment in Bitcoin had a carrying value of $102 million, but its fair value, determined by observable market prices, was $216 million, which is $114 million higher than its carrying value.

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