Block’s stock price soared after hours after the payments company beat analysts’ expectations for its third-quarter earnings, which included reporting a double-digit rise in Bitcoin revenue.
The company’s Bitcoin revenue increased 37.5% to $2.42 billion, compared to $1.76 billion in the same period last year. The company’s gross profit from Bitcoin reached $44 million, up from $36 million last year.
Block also extolled the value of Bitcoin holdings in its corporate treasury, which amounted to $216 million based on market prices. The value of his holdings, based on market prices, was $114 million higher than the value on his books.
The discrepancy between book value and market value is due to a quirk in accounting rules (ready to be modified) which requires companies to record any decline in the price of Bitcoin as an impairment charge, but prevents them from accounting for increases in the value of their Bitcoin holdings until the assets are sold. In the third quarter of 2023, the company did not recognize a loss in Bitcoin value.
In total, Block’s net revenue increased 24% year-over-year to $5.62 billion, up from $4.52 billion a year ago. Bitcoin revenue accounted for approximately 43% of total revenue. The increase in revenue from cryptocurrency was fueled by the company’s strong performance. CashApp product.
Cash App revenue increased 34% to $3.58 billion, up from $2.68 billion a year ago.
Shares in the block were trading at around $50, up 15% after the market closed Thursday.