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Jack Dorsey’s Block had $5.62B in revenue, $44M in Bitcoin profits in Q3

Block didn’t incur any impairment loss on its Bitcoin holdings, and Bitcoin revenue contributed as much as 43% of its total revenue.

Jack Dorsey-led Block, a Bitcoin-focused fintech company, published its third-quarter earnings report on Nov. 2, revealing a profitable quarter and surpassing analyst expectations.

The firm had $5.62 billion in revenue in the third quarter of 2023, boosted by solid revenue growth in Cash App and Square, with $44 million in profit on its Bitcoin (BTC) holdings thanks to a price surge in recent months.

In a shareholder letter, Dorsey shed light on the company’s focus and future plans, especially with Square, along with the key financial metrics from the third quarter. Dorsey said the company had authorized the repurchase of $1 billion in shares to offset a portion of dilution from share-based compensation.

In the third quarter of 2023, Block generated a gross profit of $1.90 billion, up 21% year-over-year. On the other hand, the mobile payment service Cash App generated a gross profit of $984 million, up 27% year-over-year, and Square generated a gross profit of $899 million, up 15%.

Block’ Q3 profits. Source: Block

Bitcoin revenue accounted for approximately 43% of the $5.6 billion in revenue for Block. The fintech firms’ growth in the third quarter was also aided by strong consumer demand and positive spending.

Related: Jack Dorsey tips pro-crypto candidate Robert Kennedy to win presidency

Block’s Bitcoin gross profit stood at $45 million, up by 22% year-over-year, with the firm selling $2.42 billion worth of BTC to customers via Cash App. The company’s Bitcoin gross profit stood at 2% of Bitcoin revenue. The firm claimed that the rise in BTC revenue was fueled by an increase in the average market price of Bitcoin and the quantity of Bitcoin sold to customers.

Block stated it has not seen any impairment loss on its Bitcoin holding since the previous quarter. Block’s investment in Bitcoin had a carrying value of $102 million as of Sept. 30, 2023, but its fair value, determined by observable market prices, was $216 million, or $114 million more than its carrying value.

Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?

Yala Unveils Vision to Revolutionize DeFi With Bitcoin

Crypto Biz: Twitter’s DOGE bet, Canada’s new crypto conglomerate, UK banking news

This week’s Crypto Biz explores Canada’s new crypto conglomerate, the recent premature passing of the Cash App creator in San Francisco, as well as DOGE news, and U.K. crypto challenges.

Twitter CEO Elon Musk has made another marketing move to bridge the social media platform with the crypto community by switching its logo icon to the Shiba Inu dog — Dogecoin’s (DOGE) digital symbol. The move, however, seems to be more than just an engagement strategy. It comes just two days after Musk asked a judge to dismiss a $258 billion lawsuit alleging the operation of a pyramid scheme to promote Dogecoin. 

Whether intended or not, the new icon led to another surge in DOGE prices during the week.

A less optimistic reality faces crypto firms in the United Kingdom, where financial institutions are limiting the ability of crypto-related businesses to access banking services. The move goes in the opposite direction of Prime Minister Rishi Sunak’s plans to prioritize financial technology disruption and make the U.K. a global crypto hub.

This week’s Crypto Biz explores Canada’s new crypto conglomerate, the recent premature passing of the Cash App creator in San Francisco, as well as DOGE news, and U.K. crypto challenges.

Elon Musk changes Twitter icon to Doge after seeking lawsuit dismissal

Dogecoin fans — and investors — welcomed the new Twitter icon with the popular meme token. The social media platform updated its avatar on April 3, two days after its CEO Elon Musk asked a United States judge to dismiss a $258 billion lawsuit filed by investors alleging the operation of a pyramid scheme to promote Dogecoin. Multiple market studies in the past have suggested that Musk tweeting about DOGE tends to drive its price higher. Musk’s lawyers, however, argued that “funny pictures” and “tweeting words of support” do not amount to a fraud claim. In this week’s case, at least, the marketing move positively impacted the altcoin’s price, with the token surging by over 22% one hour after the icon change.

WonderFi merges with Coinsquare and CoinSmart to form regulated crypto asset platform

A new crypto conglomerate has emerged in Canada as WonderFi Technologies, Coinsquare, and CoinSmart Financial have announced their merger to become the country’s largest regulated crypto trading platform, with over 1.65 million registered users. The newly merged company promises to offer Canadians a wide range of diversified products and services, including retail and institutional crypto trading, staking products, business-to-business crypto payment processing, sports betting and gaming. The companies “transacted over $17 billion since 2017 and have over $600 million in assets under custody.” The new company is estimated to have approximately $50 million in cash and investments and no outstanding debt.

United Kingdom banks are turning away crypto clients

Crypto companies are facing difficulties accessing banking services in the United Kingdom. The few banks still working with crypto firms are requesting more documentation and information about how they monitor clients’ transactions. Challenges include having applications rejected, accounts frozen and overwhelming paperwork. Crypto companies are turning to payment service providers such as BCB Payments and Stripe to maintain business operations in the United Kingdom. Just a few weeks ago, HSBC Holdings and Nationwide Building Society banned cryptocurrency purchases via credit cards for retail customers in the country, joining a growing list of banks in the U.K. to tighten restrictions on digital assets. 

Cash App creator dies following stabbing in San Francisco

Tragic news came from San Francisco as Bob Lee, the former chief technology officer of Square and creator of Cash App, was found dead following a stabbing in the early hours of April 4. A notice from the San Francisco Police Department explained officers attended to a report of a stabbing at approximately 2:35 am local time, finding a “43-year-old adult male victim suffering from apparent stab wounds.” Lee was a proponent of cryptocurrencies who gained prominence in the tech industry for being the first chief technology officer of the payments platform Square — later renamed Block — and for creating the popular mobile payment service Cash App.

Crypto Biz is your weekly pulse of the business behind blockchain and crypto, delivered directly to your inbox every Thursday.

Yala Unveils Vision to Revolutionize DeFi With Bitcoin

Cash App creator dies following stabbing in San Francisco

Bob Lee, the creator of Cash App and the former technology chief at Square, has died after an unknown attacker stabbed him.

Bob Lee, the former chief technology officer of Square and creator of Cash App, has died following a stabbing in San Francisco in the early hours of Tuesday, April 4 local time.

Bill Barhydt, the CEO of crypto wallet company Abra, tweeted on April 5 that Bob Lee “was killed in SF early today,” sharing a report from a local media outlet that reported on Lee’s death but did not name him.

Jack Dorsey also confirmed the death of Lee on the decentralized social media platform Nostr. “It’s real. Getting calls. Heartbreaking,” a screenshot of Dorsey’s post reads.

Dorsey responded to a post asking if Lee’s death was real. Source: Nostr

An April 4 notice from the San Francisco Police Department (SFPD) explained officers attended to a report of a stabbing at approximately 2:35 am local time, finding a “43-year-old adult male victim suffering from apparent stab wounds,” adding:

“Officers rendered aid and summoned medics to the scene. The victim was transported to a local hospital with life-threatening injuries. Despite efforts by first responders and medical personnel, the victim succumbed to his injuries.“

Former UFC fighter, Jake Shields, tweeted on April 5 regarding the killing of a “good friend” in one of the “good” neighborhoods of San Fransisco. He later revealed it was Lee, saying he hoped it “will at least bring attention to these problems” as he was “extremely high profile.“

The SFPD said Lee’s death is being actively investigated as a homicide. No arrests have been made, and those with information are urged to contact the department, which can be done anonymously.

Lee was the chief product officer of MobileCoin, the creator of a privacy-oriented cryptocurrency of the same name.

Related: Yuga Labs co-founder to take leave of absence due to health reasons

He gained prominence in the tech industry for being the first chief technology officer of the Dorsey-founded payments platform Square — later renamed Block — and for creating the popular mobile payment service Cash App.

Lee was a proponent of cryptocurrencies, and said in a statement when he joined MobileCoin in December 2021 that “the traditional financial system leaves behind hundreds of millions of ‘unbanked’ people worldwide and consequently excludes them from the associated benefits.“

Magazine: Crypto winter can take a toll on hodlers’ mental health

Yala Unveils Vision to Revolutionize DeFi With Bitcoin

Jack Dorsey’s TBD launches ‘C=’ to improve Bitcoin Lightning Network

C= (pronounced C equals) aims to further the reach of the Bitcoin Lightning Network through added liquidity and routing services.

TBD, a division of Block (formerly Square) led by CEO Jack Dorsey, launched a new venture named c= (pronounced c equals) to improve the Bitcoin Lightning Network through tools and services.

The Lightning Network (LN) is a layer 2 payment network built to ease the mainstream adoption of Bitcoin (BTC) by enabling faster, cheaper and more reliable peer-to-peer payments. However, c= aims to further the reach of LN through added liquidity and routing services.

Since its launch, the LN’s liquidity and capacity have witnessed organic growth via real-world adoption. In addition, services like c= offer incremental upgrades to support the ongoing Bitcoin adoption globally.

Visual representation of widespread Bitcoin Lightning adoption. Source: c= 

Through liquidity, services and infrastructure, c= caters to wallet users, businesses and lightning node operators for faster and cheaper payments. The official announcement read:

“We want to meet you where your lightning needs are. Are you a business looking to accept Lightning payments? A wallet in need of channels or inbound for your customers? A hardened plebnet veteran looking for your next big source?”

Layer 2 services collectively improving Bitcoin operations make it easier for people to adopt the ecosystem into their lives. If you want to accept Bitcoin as payment for your services, read Cointelegraph’s guide on how to get paid in BTC.

Related: Jack Dorsey’s decentralized Twitter rival enters app store

Jack Dorsey’s popular payments venture Cash App recently integrated crypto tax and accounting software TaxBit into its services. The move allows Bitcoin users an easy way to report taxes.

As Cointelegraph reported, Cash App launched its Bitcoin trading services in 2018 and rolled out BTC deposits the following year. The company claims to have over 10 million Bitcoin users.

Yala Unveils Vision to Revolutionize DeFi With Bitcoin

Jack Dorsey-led Block posts $1.5B in Q2 profits, BTC revenue down

Block Inc. posted $1.47B worth of profit in Q2 but BTC trading services profit only accounted for $41 million of that figure, with the firm citing price volatility and a lack of consumer demand.

Former Twitter CEO Jack Dorsey’s digital payments firm Block Inc. saw its year-on-year (YoY) profits soar 29% to $1.47 billion in Q2, though its Bitcoin business slumped on decreased customer demand and a fall in Bitcoin (BTC) prices.

The financial services firm primarily generates Bitcoin revenue by providing BTC trading services via its digital payments application Cash App.

Block Inc. noted the business generated $1.79 billion of Bitcoin revenue in the quarter, down 34% YoY, while Bitcoin gross profit was only $41 million, which suggests it may be a high-cost venture to provide Bitcoin services to its customers.

Block Inc. said the fall in Bitcoin revenue was attributed to “broader uncertainty” in crypto assets, stating:

“The year-over-year decrease in Bitcoin revenue and gross profit was driven primarily by a decline in consumer demand and the price of bitcoin, related in part to broader uncertainty around crypto assets, which more than offset the benefit of volatility in the price of Bitcoin during the quarter.”

However, Block Inc. emphasized that the BTC profit slump doesn’t reflect the broader performance of the business. It also noted that BTC profits will likely fluctuate over time as a result of “changes in customer demand or the market price of Bitcoin.”

The company also noted that it recognized a $36 million impairment loss on its BTC holdings, however this is likely just a loss on paper.

Under U.S. accounting procedures, crypto is classified as an intangible asset on balance sheets and companies must report a loss when the price of the asset drops below its cost basis, even if a gain or loss has been realized through a sale during the given quarter.

The company noted that as of June 30, 2022, the fair value of its investment in Bitcoin is $160 million based on market prices.

Related: Interview with Kevin O’Leary: $28K Bitcoin next or lower? | Market Talks with Crypto Jebb

Investors appear un-impressed with Block Inc.’s performance in Q2 however, as the firm’s stock SQ has dipped by 7.42% in after-hours trading to sit at $83 at the time of writing.

Bloomberg suggested this was due to the company reporting lower than expected transaction volume at $52.5 billion, as opposed to the estimated $53.47 billion.

Bitcoin from the Block

Dorsey, the fervent Bitcoin maxi, has been relatively quiet about his plans for digital gold since announcing that Block Inc. was bypassing the Web3 model to build the Bitcoin blockchain-focused Web5 project in June.

Web5 is essentially a decentralized web platform, or DWP, that allows developers to create decentralized web apps via DIDs and decentralized nodes, which will also have a monetary network built around BTC, and not smart contract backed tokenization.

Yala Unveils Vision to Revolutionize DeFi With Bitcoin

Jack Dorsey’s Block hits $1.3B in Q1 profits, $43M in BTC trading revenue

Despite that the Bitcoin price trended down over Q1, the Block ecosystem of payment solutions with Bitcoin in mind performed well.

Block, the pro-Bitcoin (BTC) umbrella company that hosts Cash App, Square and Afterpay, continues its growth in 2022. According to its Shareholder letter, in the first quarter of 2022, gross profits are “up 34% year over year.”

In total, the group netted $1.29 billion in gross profits. However, operating costs were also up “$1.52 billion in the first quarter of 2022, up 70% year over year.”  The group explains that the acquisition of Afterpay, a buy now pay later service, could explain the increasing costs.

In total net Block’s revenues reached $3.96 billion from January to March 2022, down 22% compared to 2022. The group confirms that the drop was “driven by a decrease in Bitcoin revenue.”

Cash App, Block’s Bitcoin retail outlet as well as a mobile payment service, continued to sell Satoshis, although the figures are less promising than the previous quarter:

"Cash App generated $1.73 billion of Bitcoin revenue and $43 million of Bitcoin gross profit during the first quarter of 2022, down 51% and 42% year over year, respectively".

In light of Bitcoin prices struggling to break $30,000 in quarter two, the group will take encouragement from an increase in non-Bitcoin revenues in quarter one. On the march by 44$ year on year, to $2.23 billion, the Block ecosystem which also includes Tidal and the group TBD is not wholly dependent on crypto market performance.  

Plus, the Square ecosystem of payment solutions for merchants, including point of sale devices, has performed well. It delivered a "gross profit of $661 million, an increase of 41% year over year.”

Related: FTX CEO sees no future in Bitcoin payments, community fires back

The quarterly report made 81 mentions of Bitcoin and zero of cryptocurrency, holding true to Jack Dorsey’s Bitcoin-maxi credentials. Furthermore, the report states that over 10 million Cash App accounts have bought Bitcoin. Cash App does not offer the purchase of popular cryptocurrencies such as Ethereum (ETH) or Dogecoin (DOGE). 

In April, it was announced that its customers in the United States could automatically invest a portion of their direct deposit paychecks into Bitcoin using Cash App, or that their “direct deposits” would automatically convert, says the report.

Yala Unveils Vision to Revolutionize DeFi With Bitcoin

Tesla Ventures Into 100% Solar-Powered Bitcoin (BTC) Mining With Jack Dorsey’s Block: Report

Electric vehicle giant Tesla is reportedly teaming up with payments platform Block and blockchain tech company Blockstream to mine Bitcoin (BTC) in Texas using solar energy. According to a new report by CNBC, the trio will mine BTC using Tesla’s solar panels and proprietary battery storage packs. The mining outfit will feature an open dashboard […]

The post Tesla Ventures Into 100% Solar-Powered Bitcoin (BTC) Mining With Jack Dorsey’s Block: Report appeared first on The Daily Hodl.

Yala Unveils Vision to Revolutionize DeFi With Bitcoin

Jack Dorsey’s Block Bitcoin (BTC) Wallet Project To Use Fingerprint Technology for Security

Jack Dorsey’s upcoming Bitcoin (BTC) wallet product will be outfitted with fingerprint sensor devices for security, according to a new update. Dorsey’s company Block, formerly known as Square, first announced plans to develop a wallet last summer. In a new update, the team behind the BTC wallet announced that the project will include both hardware […]

The post Jack Dorsey’s Block Bitcoin (BTC) Wallet Project To Use Fingerprint Technology for Security appeared first on The Daily Hodl.

Yala Unveils Vision to Revolutionize DeFi With Bitcoin

Cash App’s Bitcoin Revenue Grew 119% in 2021, Gross Profit From BTC Rose 124%

Cash App’s Bitcoin Revenue Grew 119% in 2021, Gross Profit From BTC Rose 124%Popular mobile payment platform Cash App, developed by Jack Dorsey’s Block Inc., generated $10 billion in bitcoin revenue and $218 million in bitcoin gross profit in 2021. Compared to the previous year, the bitcoin revenue increased 119% while gross profit rose 124%. Cash App’s Bitcoin Business Block Inc., formerly Square Inc., released its Q4 2021 […]

Yala Unveils Vision to Revolutionize DeFi With Bitcoin

Block nets $1.18B Q4 gross profit marking a 47% YoY increase

In total, Block generated $4.42 billion worth of gross profit in 2021 marking a total YoY growth of 62%, however, net profit totaled just $77 million.

Crypto-friendly digital payments tech firm Block, Inc. (formerly known as Square) posted $1.18 billion worth of gross profit in Q4, representing a growth of 47% over the same period in 2020.

The firm led by Bitcoin maxi Jack Dorsey has multiple business arms including Cash App, Square, and the freshly acquired buy now pay later (BNPL) firm Afterpay after the $29 billion deal officially closed at the end of last month.

Block’s 2021 Q4 report was posted on Feb. 24, and the firm revealed significant gross profit increases across Cash App and Square, with each firm generating $518 million and $657 million apiece to mark YoY gains of 37% and 54% respectively.

In total, the company generated $4.42 billion worth of gross profit for the entirety of 2021, marking a YoY growth of 62% compared to 2020. The impressive figures do require a pinch of salt, however, as Block’s net profit after expenses for Q4 tallied just $77 million ($166 million for all of 2021) suggesting hefty operating costs for the firm.

The company pointed to Cash App’s Cash Card and Square’s seller ecosystem as key metrics behind the Q4 growth, noting that the Cash Card saw more than 13 million active users in December with 38% of sellers using four or more Square business products.

Moving forward in 2022, Block also highlighted the significance of the Afterpay deal as it will enable the firm to significantly scale up its offerings and products this year. The firm stated:

“On January 31, we completed our acquisition of Afterpay, a global “buy now, pay later” (BNPL) platform. We believe this acquisition will further Block’s strategic priorities for Square and Cash App by strengthening the connections between our ecosystems as we deliver compelling financial products and services for consumers and merchants.”

Related Coinbase made $2.2 billion in revenue from transaction fees in Q4

Block has been ramping up its presence in the crypto space of late, with Cointelegraph reporting in mid-January that Cash App had integrated the Lightning Network to speed up BTC transfers, while Dorsey confirmed that Block was rolling out open-source Bitcoin mining systems.

After stepping down from Twitter in November, Dorsey is reportedly said to be mainly focused on scaling the Block’s crypto initiatives.

Yala Unveils Vision to Revolutionize DeFi With Bitcoin