Block, a payment platform led by ex-Twitter boss Jack Dorsey, has made enormous Bitcoin gross profits in Q4 2023. Block earned $66 million from selling Bitcoin through Cash App, the firm’s recent Q4 2023 earnings report noted.

The fintech firm’s gross profit is a 90% increase year over year, it said. Released Thursday, Block’s earnings report prompted a stock price rally up 12.35% in after-hours trading for Nasdaq.

Per the report, the total sale amount of Bitcoin sold to customers was $2.52 billion, up 37% year over year.

“The year-over-year increase in Bitcoin revenue and gross profit was driven by an increase in the average market price of Bitcoin as well as a benefit from the price appreciation of our Bitcoin inventory during the quarter.”

For the entire year of 2023, Cash App generated $205 million of Bitcoin gross profit, up 31% year over year. Block, formerly known as Square, launched bitcoin trading on Cash App in 2018.

As reported earlier, the crypto-embracing Cash App saw over 1 million first time customers purchasing Bitcoin in January 2023. Later in October, the mobile payments app integrated Bitcoin Lightning Network, a layer 2 scaling solution for cryptocurrency’s scalability issues.

Further, the earnings report to shareholders noted that more users are opting to use Cash App Cards.

“We see the Cash App Card as a gateway to our customers adopting Cash App as a primary banking solution,” it said.

In December alone, the company recorded a 20% jump in Cash App Card monthly active users to 23 million. This is more than twice the growth rate of total monthly actives.

Source