Jack Dorsey's Financial Technology Company Block Earned $44 Million From Bitcoin In Three Months.

The company's Bitcoin revenue accounts for 43% of the total revenue.

The fintech company Block, under the leadership of Jack Dorsey, released its third-quarter earnings report on November 2. According to the report, the company generated $5.62 billion in revenue in the third quarter of 2023, surpassing analysts' expectations. This success can be attributed to the strong revenue growth in Cash App and Square.

Additionally, thanks to the increase in Bitcoin prices over the past three months, the company earned $44 million in profit from its Bitcoin holdings. In a letter to shareholders, Jack Dorsey announced that the company has approved a $1 billion share buyback program to offset the equity weakness caused by stock-based compensation.

In the third quarter of 2023, Block achieved a gross profit of $1.90 billion, marking a 21% increase compared to the same period in the previous year. Furthermore, the mobile payment service Cash App recorded an annual increase of 27%, generating $984 million in gross profit, while Square saw a 15% annual increase, reaching $899 million in gross profit.

Block and Bitcoin

Bitcoin revenue represented approximately 43% of Block's total revenue. The fintech company supported its growth in the third quarter with strong consumer demand and positive spending.

Block's gross profit from Bitcoin increased by 22% compared to the previous year, reaching $45 million. Additionally, the company sold Bitcoin worth $2.42 billion to customers through Cash App. The Bitcoin gross profit accounted for 2% of the Bitcoin revenue. Block explained that the increase in Bitcoin revenue was attributed to the rise in the average market price of Bitcoin and the quantity sold to customers.

Block stated that there had been no depreciation in the value of its Bitcoin assets since the previous quarter. The company's Bitcoin investment as of September 30, 2023, was valued at $102 million, but its true value, based on observable market prices, was determined to be $216 million.