Block, Inc. Reports 37% Rise in Bitcoin Revenue for Q3
Block, Inc., the financial services firm led by Jack Dorsey, announced a 37% increase in bitcoin revenue for Q3. The company generated $2.42 billion in revenue from the sale of bitcoin to customers, compared to $1.77 billion during the same period last year. The gross profit from bitcoin transactions also rose by 22%, reaching $45 million.
Factors Contributing to Growth
The rise in bitcoin revenue can be attributed to two main factors: the increase in the average market price of bitcoin and a higher volume of bitcoin sold through Block’s Cash App mobile payment service. These factors have driven the company’s success in Q3, as outlined in their shareholder letter.
Increase in Corporate Treasury Holdings
Block also reported an increase in the value of its corporate treasury bitcoin holdings. As of September 30, 2023, the carrying value of their investment was $102 million, while the fair value based on market prices was $216 million. This $114 million difference is due to accounting rules that only account for impairments when prices go down, not when they go up.
New Accounting Rules
The recent approval of new accounting rules by the Financial Accounting Standards Board allows companies to report their crypto holdings at fair market value. This change will provide a more accurate representation of an asset’s current valuation.
Beyond Bitcoin
In addition to its success with bitcoin, Block’s overall financials posted strong results in Q3. Cash App revenue saw a 26% year-over-year increase, reaching $1.16 billion, and gross profit rose to $939 million. The platform also experienced growth in monthly active users and inflows per active user.
Block’s Buy Now, Pay Later (BNPL) platform contributed $129 million in revenue and $94 million in gross profit.
Hot Take: Block, Inc. Sees Impressive Q3 Results Driven by Bitcoin Revenue
Block, Inc., led by Jack Dorsey, reported impressive Q3 results with a 37% increase in bitcoin revenue and a 22% rise in gross profit from bitcoin transactions. This growth was fueled by the higher market price of bitcoin and increased volume through the Cash App. The company’s corporate treasury holdings also saw an increase in value. Beyond bitcoin, Block’s overall financials were strong, with significant contributions from Cash App revenue and their BNPL platform. These results demonstrate Block’s success in the crypto space and highlight the continued growth potential of the company.
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