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Jack Dorsey’s Block Is Sitting on $207M Gain on Its Bitcoin Bet

Block, Inc. (SQ) stocks were up 13% in after-market trading hours.

By Shaurya Malwa|Edited by Omkar Godbole

Updated Mar 8, 2024, 10:03 p.m. Published Feb 23, 2024, 5:16 a.m.

CASH app on Smartphone next to $100 dollar bill (Shutterstock)

Fintech company Block, in its fourth-quarter earnings report released Thursday, reported a remeasurement gain of $207 million on its bitcoin (BTC) holdings.

As of Dec. 31, 2023, Block held approximately 8,038 BTC for investment purposes with a fair value of $340 million.

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The Jack Dorsey-owned company made $66 million in gross profit on bitcoin sales last quarter through Cash App, a banking services platform, representing a 90% increase year over year.

“The total sale amount of bitcoin sold to customers—which we recognize as bitcoin revenue—was $2.52 billion, up 37% year over year,” the report said. “The year-over-year increase in bitcoin revenue and gross profit was driven by an increase in the average market price of bitcoin as well as a benefit from the price appreciation of our bitcoin inventory during the quarter.”

Shares of Block (NASDAQ: SQ) are up 13% in after-hours trading to $76, data shows. Overall, Block reported its gross profit grew 22% yearly to $2.03 billion. Square generated a gross profit of $828 million, up 18% year over year, and Cash App generated a gross profit of $1.18 billion, up 25% year over year.

Shaurya Malwa

Shaurya is the Co-Leader of the CoinDesk tokens and data team in Asia with a focus on crypto derivatives, DeFi, market microstructure, and protocol analysis.

Shaurya holds over $1,000 in BTC, ETH, SOL, AVAX, SUSHI, CRV, NEAR, YFI, YFII, SHIB, DOGE, USDT, USDC, BNB, MANA, MLN, LINK, XMR, ALGO, VET, CAKE, AAVE, COMP, ROOK, TRX, SNX, RUNE, FTM, ZIL, KSM, ENJ, CKB, JOE, GHST, PERP, BTRFLY, OHM, BANANA, ROME, BURGER, SPIRIT, and ORCA.

He provides over $1,000 to liquidity pools on Compound, Curve, SushiSwap, PancakeSwap, BurgerSwap, Orca, AnySwap, SpiritSwap, Rook Protocol, Yearn Finance, Synthetix, Harvest, Redacted Cartel, OlympusDAO, Rome, Trader Joe, and SUN.