In the fourth quarter of 2023, Jack Dorsey-led Block witnessed a significant surge in Bitcoin (BTC) sales, totaling $2.52 billion, marking a remarkable 37% increase compared to the previous year. Additionally, Block received $207 million in overvalued Bitcoin assets, further solidifying its position in the cryptocurrency market. The company reported holding approximately 8,038 BTC by the end of the year, valued at around $340 million.
The rise in Bitcoin revenue and gross profit was attributed to the increasing average market price of Bitcoin and the appreciation of Block’s Bitcoin inventory during the quarter, according to the company’s report. Moreover, Block’s mobile payment platform, Cash App, generated a profit of $66 million from Bitcoin sales, reflecting a 90% year-over-year increase in gross profit.
The positive financial performance of Block led to a notable uptick in its shares during Thursday’s main session in New York, with a 5.4% increase, closing at $67.96. Subsequently, after-hours trading saw a further surge of 13.2%, reaching $76.9, the highest since December 2023.
Despite the promising financial results, Block recently underwent a restructuring phase, resulting in the layoff of over 1,000 employees, equivalent to 10% of its workforce. The restructuring primarily aimed at streamlining operations, particularly within the Cash App, Foundational, and Square divisions, as highlighted in a memo reviewed by journalists.
Twitter, now known as X creator Jack Dorsey’s payments company, has demonstrated a focused approach on optimizing production, which evidently paid off in the last quarter. The company’s strategic decisions and financial performance reflect its commitment to navigating the volatile cryptocurrency landscape while ensuring operational efficiency and sustainability.
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