Jack Dorsey’s Fintech Firm Experiences 90% YoY Increase
Block, the fintech company led by Jack Dorsey, the former CEO of Twitter, has announced a remarkable $66 million in bitcoin gross profit from Bitcoin sales through its Cash App in the last quarter of 2023. This reflects a substantial 90% increase compared to the same period the previous year. The company’s Q4 2023 earnings report, released on Thursday, triggered a surge in the stock price of NASDAQ: SQ, rising 12.35% in after-hours trading from $67.96 to $76.10.
Bitcoin Revenue and Bitcoin Gross Profit Surge
Block’s report detailed a total Bitcoin revenue of $2.52 billion, showing a significant 37% YoY increase. The surge in Bitcoin revenue and Bitcoin gross profit was attributed to the rise in the average market price of Bitcoin and gains from the price appreciation of Block’s Bitcoin inventory during the quarter. Block had previously invested $50 million and $170 million in Bitcoin in late 2020 and early 2021, respectively. By the end of 2023, the company held 8,038 Bitcoins, valued at around $340 million, which has since surpassed $400 million, resulting in a $207 million gain.
Mobile Cash App’s Impact
A considerable portion of Bitcoin sales occurred through smartphones, with the mobile Cash App generating $205 million in Bitcoin gross profit and $9.50 billion in Bitcoin revenue for 2023. This represents a 31% and 34% YoY increase, respectively. Jack Dorsey emphasized the importance of easy, connected banking features that foster trust, positioning Cash App as a reliable and dependable platform for financial transactions.
Financial Growth and Future Outlook
For the fiscal year ending December 31, 2023, Block’s revenues surged to $9,498,302, showcasing a robust 33.54% growth compared to the previous year’s $7,112,856. While 2022 saw a decline of 28.96% in revenues compared to 2021, the recent financial results indicate a positive trajectory for the company. Block’s focus on the Cash App, highlighted in their Q3 2023 report, contributed significantly to their impressive performance.
AI’s Role in Future Financial Services
During the earnings call, Jack Dorsey highlighted the growing role of artificial intelligence (AI) in shaping the future of financial services. He emphasized the impact of AI on learning, faster shipping, error correction, and staying ahead of the market. Dorsey sees AI as a tool that enhances creativity and integrates complex systems efficiently, reflecting the company’s commitment to embracing technological advancements in the financial sector.
