Block Inc‘s SQ Bitcoin BTC/USD revenue grew 37.5% to $2.42 billion from a year earlier.
What Happened: In after-hours trading, the Jack Dorsey-run company witnessed a surge in its share price after surpassing analyst expectations for its third-quarter earnings.
The gross profit derived from Bitcoin also rose to $44 million, marking an improvement from the previous year’s $36 million.
The company also highlighted the value of its Bitcoin holdings in its corporate treasury, which amounted to $216 million based on market prices. Importantly, the market value of these holdings exceeded their book value by $114 million.
Notably, Block did not recognize any Bitcoin impairment loss in the third quarter of 2023.
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Why It Matters: When considering the overall revenue, Block witnessed a remarkable 24% year-over-year growth, reaching $5.62 billion from $4.52 billion in the same period last year.
Bitcoin revenue accounted for approximately 43% of the total revenue. The rise in revenue fueled by cryptocurrency was predominantly driven by the strong performance of Block’s Cash App product.
Specifically, Cash App revenue grew by 34% to $3.58 billion, surpassing the $2.68 billion recorded a year ago.
Price Action: At the time of writing, BTC was trading at $34,617.55, down 2.61% in the last 24 hours, according to Benzinga Pro. Block’s shares closed at $43.98, representing a gain of 7.37% during regular market hours. In after-hours trading, the shares continued to climb, reaching approximately $50, reflecting an increase of 16.33%.
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