Shares for Jack Dorsey’s fintech giant Block (SQ) surged by 12% to $49.19 on Friday after the company published bullish third-quarter earnings figures a day prior.
That includes increased Bitcoin revenue at the company’s payment subsidiary, Cash App, which reeled in 37% more income than during the same period last year.
Block is Back
Per the Thursday report, Block’s total net revenue rose by 24% year over year to $5.62 billion. When excluding “Bitcoin revenue”, this figure shrinks to $3.19 billion, up 16% since Q3 2022.
Bitcoin revenue is generated by Cash App’s sales of BTC to customers. Only 2% of that revenue – which totaled $2.42 billion – is actually kept by the company as gross profit, amounting to $45 million this quarter.
Across the company, Block’s earnings per share amounted to $0.55, adjusted, beating expectations of $0.47 in adjusted earnings. Gross profit grew 21% since last year, from $1.57 billion to $1.9 billion.
Of that profit, roughly $674 million was transaction-based, while another $1.23 billion was subscription and services-based – increases of 9% and 25% year over year, respectively.
Block’s Bitcoin Balance
Block also got a balance sheet boost thanks to the value of the BTC on its balance sheet rising this year. As of September 30, Bitcoin traded for, compared to $26,967 exactly one year prior.
“The carrying value of our investment in bitcoin, after cumulative impairment charges, was $102 million, while the fair value, based on observable market prices, was $216 million, which was $114 million in excess of our carrying value,” read the company’s shareholder letter.
Due to current accounting standards, Bitcoin held on corporate balance sheets gathers an “impairment charge” when its value declines, which cannot be written off if its value bounces back.
This is slated to change to a “fair value” accounting standard for digital assets in 2024, instead of valuing Bitcoin held in corporate treasuries based on observable market prices.
Coinbase, the leading crypto exchange in the United States, also surpassed revenue expectations in the third quarter. The firm amassed $674 million in earnings – most of which came from subscription and services revenue rather than earnings.
The post Jack Dorsey’s Block (SQ) Jumps 12% After Bitcoin Revenue Surges In Q3 appeared first on CryptoPotato.
#AANews #CryptoNews #Bitcoin #JackDorsey #SquareCashApp [Source: CryptoPotato]