On November 2, Block, a fintech company, focused on Bitcoin and took over its leadership. Jack DorseyReleased its Q3 earnings report; It delivered a profitable quarter and beat analysts’ expectations.
The company reported revenue of $5.62 billion in the third quarter of 2023, driven by solid growth in Cash App and Square revenue, and generated $44 million in profits from its Bitcoin reserves (Bitcoin).
in the letter In addition to the Q3 main financial data, Dorsey told shareholders about the company’s goals and future plans, especially for Square.
Dorsey said the company authorized a $1 billion share buyback to offset some of the reduction from stock-based compensation.
Block generated $1.90 billion in gross profit in the third quarter of 2023, up 21% from the previous year. Mobile payment service Cash App made $984 million in gross profit, up 27% from the previous year, while Square made $899 million in gross profit, up 15%.
Revenue from Bitcoin accounted for approximately 43% of Block’s $5.6 billion in revenue. Fintech companies’ growth in the third quarter was also helped by strong consumer demand and positive spending.
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Gross profit from Bitcoin reached $45 million, up 22% from the previous year, as the company sold $2.42 billion of BTC to customers through Cash App. The company’s gross profit from Bitcoin accounted for 2% of its Bitcoin revenue. The company said the increase in BTC revenue was due to an increase in the price and quantity of Bitcoin sold to customers.
Block said he has not seen any depreciation in Bitcoin reserves since the previous quarter. As of September 30, 2023, the book value of Block’s investment in Bitcoin was $102 million, while its fair value, determined based on observable market prices, was $216 million, or $114 million more than its book value.