Jack Dorsey-Led Block Witness High Profits on Bitcoin Sales Via Cash App

Bitcoin Block Jack Dorsey

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Sujha Sundararajan

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Sujha Sundararajan

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Sujha has been recognised as 🟣 Women In Crypto 2024 🟣 by BeInCrypto for her leadership in crypto journalism.

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February 23, 2024 03:52 EST

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Block, a payment platform led by ex-Twitter boss Jack Dorsey, has made enormous Bitcoin gross profits in Q4 2023. Block earned $66 million from selling Bitcoin through Cash App, the firm’s recent Q4 2023 earnings report noted.

The fintech firm’s gross profit is a 90% increase year over year, it said. Released Thursday, Block’s earnings report prompted a stock price rally up 12.35% in after-hours trading for Nasdaq.

Per the report, the total sale amount of Bitcoin sold to customers was $2.52 billion, up 37% year over year.

“The year-over-year increase in Bitcoin revenue and gross profit was driven by an increase in the average market price of Bitcoin as well as a benefit from the price appreciation of our Bitcoin inventory during the quarter.”

For the entire year of 2023, Cash App generated $205 million of Bitcoin gross profit, up 31% year over year. Block, formerly known as Square, launched bitcoin trading on Cash App in 2018.

As reported earlier, the crypto-embracing Cash App saw over 1 million first time customers purchasing Bitcoin in January 2023. Later in October, the mobile payments app integrated Bitcoin Lightning Network, a layer 2 scaling solution for cryptocurrency’s scalability issues.

More Users Interested in Cash App Cards

Further, the earnings report to shareholders noted that more users are opting to use Cash App Cards.

“We see the Cash App Card as a gateway to our customers adopting Cash App as a primary banking solution,” it said.

In December alone, the company recorded a 20% jump in Cash App Card monthly active users to 23 million. This is more than twice the growth rate of total monthly actives.