Block, a Bitcoin-focused fintech company led by Jack Dorsey, released its third-quarter earnings report on November 2, reporting quarterly profits that beat analysts’ expectations.
The company’s revenue in the third quarter of 2023 was $5.62 billion, driven by solid revenue growth from Cash App and Square, and it made $44 million in profits from its Bitcoin (BTC) holdings as prices surged in recent months.
among shareholders letterDorsey laid out the company’s focus and future plans, specifically Square, as well as key financial metrics for the third quarter. Dorsey said the company has authorized $1 billion in stock repurchases to offset some dilution from equity incentives.
In the third quarter of 2023, Block achieved gross profit of US$1.9 billion, an annual increase of 21%. On the other hand, the gross profit of mobile payment service Cash App was US$984 million, an increase of 27% compared with the same period last year, and the gross profit of Square was US$899 million, an increase of 15% compared with the same period last year.
Bitcoin revenue accounts for approximately 43% of Block’s $5.6 billion in revenue. Fintech companies’ third-quarter growth also benefited from strong consumer demand and aggressive spending.
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Block’s Bitcoin gross profit was US$45 million, an increase of 22% year-on-year, and the company sold US$2.42 billion worth of Bitcoin to customers through Cash App. The company’s Bitcoin gross profit represents 2% of Bitcoin revenue. The company claimed that the growth in Bitcoin revenue was driven by increases in the average market price of Bitcoin and the number of Bitcoins sold to customers.
Block said it has not experienced any impairment losses on its Bitcoin holdings since last quarter. As of September 30, 2023, Block’s investment in Bitcoin had a book value of $102 million, but its fair value based on observable market prices was $216 million, which was $114 million higher than the book value.
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