- Cash App was the main driver of Block’s 37% year-over-year increase in Bitcoin revenue to $2.5 billion in Q4 2023, and 34% increase to $9.5 billion for the full year.
- Block saw even bigger growth in Bitcoin gross profit from Cash App – up 90% year-over-year to $66 million in Q4 2023 and up 31% to $205 million for the full year.
- Block’s strong Bitcoin earnings led to an earnings beat and 54% stock surge, showcasing the importance of crypto to the company’s growth strategy under Jack Dorsey.
Jack Dorsey’s financial services company Block, formerly known as Square, recently released its fourth-quarter earnings report showing a significant increase in Bitcoin revenue and gross profit compared to the previous year.
Cash App Drives Bitcoin Revenue Growth
Block’s peer-to-peer payment service Cash App was the primary driver behind the growth in Bitcoin revenue. In Q4 2023, Cash App generated $2.5 billion in Bitcoin revenue, up 37% year-over-year. For the full year, Bitcoin revenue from Cash App hit $9.5 billion, a 34% increase compared to 2022.
Cash App enables users to easily buy, sell, send and receive Bitcoin. The increase in Bitcoin revenue and gross profit was driven by rising average Bitcoin prices as well as appreciation in Block’s Bitcoin inventory.
90% Surge in Bitcoin Gross Profit
In addition to Bitcoin revenue growth, Block saw even larger gains in terms of Bitcoin gross profit from Cash App. Cash App generated $66 million in Bitcoin gross profit in Q4 2023, a whopping 90% increase compared to Q4 2022.
For the full year, Cash App’s Bitcoin gross profit hit $205 million, up 31% year-over-year. The company holds over 8,000 BTC worth around $413 million. Changes to Bitcoin pricing implemented during Q4 helped drive the significant improvement in gross profit.
Block Stock Surges on Earnings Beat
Block’s strong Bitcoin earnings numbers led the company to exceed analyst estimates across the board. Total gross profit was up 22% year-over-year to $2.02 billion. The company posted full-year adjusted EBITDA of $1.79 billion, surpassing its own guidance.
Following the earnings beat, Block’s stock price surged 54%, reflecting investor optimism regarding the company’s growing cryptocurrency business. The results showcase how Bitcoin and crypto remain central to Block’s long-term growth strategy under CEO Jack Dorsey.
Block’s standout Q4 Bitcoin performance provides further validation of the integral role that cryptocurrencies now play in the company’s operations and outlook. If growth continues at this pace, Block could become one of the largest mainstream financial services providers for Bitcoin.
