- Block Inc. reported a $207 million gain on its bitcoin holdings in Q4 2022, benefiting from its early cryptocurrency investments and adoption.
- Block’s bitcoin trading revenue from Cash App customers jumped 37% year-over-year to $2.52 billion in Q4, generating $66 million in bitcoin gross profit.
- Block’s total gross profit rose 22% to $1.03 billion in Q4, driven by growth in both its Square and Cash App segments, leading to a 13% share price increase.
Block Inc. saw its bitcoin holdings pay off in the fourth quarter of 2022, with the company reporting a $207 million remeasurement gain on its holdings of the cryptocurrency. The Jack Dorsey-led fintech firm has been a major corporate bitcoin backer, making the digital asset a key part of its business strategy.
Bitcoin Revenue and Profit
Bitcoin Trading Performance
Block sold $2.52 billion worth of bitcoin to customers through its Cash App in Q4, a 37% increase year-over-year. This generated $66 million in gross profit for the company from bitcoin sales, a 90% jump from the same quarter last year. Block said the rise in bitcoin revenue and profit was driven by higher average bitcoin prices and the appreciation of its bitcoin inventory.
Overall Business Results
For the full quarter, Block generated total gross profit of $1.03 billion, up 22% year-over-year. The company’s Square segment produced gross profit of $828 million, an 18% increase, while the Cash App segment’s gross profit climbed 25% to $1.18 billion. Block’s share price rose 13% in after-hours trading following the earnings beat.
Conclusion
Block’s bitcoin strategy paid dividends in the fourth quarter, with the company’s early cryptocurrency investments now bearing fruit. The results demonstrate the potential for corporate bitcoin adoption to strengthen the bottom line, a lesson other firms may take note of as they plot their own crypto strategies.
