Jack Dorsey Block (ESQ) Bitcoin revenue jumps 12% in Q3

Jack Dorsey's fintech giant Block ( SK ) rose 12 percent to $49.19. After the company posted higher third-quarter earnings figures a day earlier.

This adds to the Bitcoin revenue of the company's payments subsidiary, the Cash app, which posted a 37% increase in revenue compared to the same period last year.

The block is returned

According to Thursday's report, Bloc's total net income rose 24 percent year over year to $5.62 billion. Excluding Bitcoin revenue, this figure drops to $3.19 billion, up 16% from Q3 2022.

Bitcoin revenue is generated by the sale of BTC to customers through the Cash app. Only 2 percent of that revenue — a total of $2.42 billion — was actually booked by the company as gross profit, which totaled $45 million this quarter.

At the company, Block's earnings per share came in at $0.55, adjusted, with adjusted earnings of $0.47 expected. Gross profit is up 21 percent from last year; It grew from $1.57 billion to $1.9 billion.

Of that profit, nearly $674 million was transaction-based and another $1.23 billion was subscription- and service-based — up 9% and 25% year-over-year, respectively.

Block your Bitcoin balance

Block has seen a balance sheet increase this year thanks to the rising value of BTC on its balance sheet. In the year As of Sept. 30, bitcoin traded at $26,967 a year ago.

“The value of our investment in bitcoin after cumulative impairment charges was $102 million, and the fair value based on observed market prices was $216 million, which is $114 million more than our carrying value,” the company's shareholder read. Letter.

Due to current accounting standards, Bitcoin held on corporate balance sheets collects a “damage fee” when its value declines, which cannot be canceled if the value recovers.

This is set to change to a “fair value” accounting standard for digital assets in 2024, instead of valuing bitcoins held by corporate treasuries based on observable market prices.

Coinbase, the leading crypto exchange in the United States, also exceeded revenue expectations in the third quarter. The company raked in $674 million in revenue — most of which came from subscription and services revenue rather than revenue.