Block’s Cash App generated $66 million in Bitcoin gross profit in Q4 2023, with the total amount of BTC sold to customers reaching $2.5 billion.
Jack Dorsey-led payments firm Block released its earnings report for the fourth quarter of 2023 on Feb. 22. The report revealed that the company earned $66 million in gross profit from selling Bitcoin via its Cash App in the given period, marking a strong increase of 90% from the prior year.
The total sale amount of BTC (shown as Bitcoin revenue) rose to $2.5 billion, up 37% year-over-year in Q4. As for the full-year results, Bitcoin revenue stood at $9.5 billion, up 34% year-on-year, while Bitcoin-related gross profit went up 31% to $205 million.
Cash App itself generated a total gross profit of $1.18 billion in Q4, up 25% year over year. Block shares surged 5.4% after the report, as the firm’s financial results exceeded analyst estimates.
Inspired by the positive surge, the firm has lofty plans for the future. The company management assures that their cost-cutting phase is over. Now, Block is going to focus on growth, while prioritizing more impactful work among all the initiatives.
“Cash App aims to become one of the top providers of banking services to households in the United States which earn up to $150,000 per year.”
Jack Dorsey, Block CEO
According to the firm, this prospective target segment represents approximately 80% of US consumers and more than half of national household income.
To reach their goals, the Block team adopts a three-component strategy.
- Firstly, the firm will leverage the Cash App Card to motivate customers to deposit their paychecks with Block and adopt Cash App as a primary banking solution.
- In addition, the company wants to strengthen its P2P network with higher-household-income parents and their dependents, expanding the offering for teens.
- Finally, the Cash App service is going to become even more socially focused through features like expanded profile functionality, sharing/recommendations, and other new ways for customers to transact through financial services.
Cash App is a crypto-friendly mobile payment service that allows individuals to transfer money in P2P transactions, as well as buy, sell, send and receive BTC with their linked cards or cash balances.
In 2023, Block’s TBD division launched a new C= venture to expand the reach of the Bitcoin Lightning Network through added liquidity and routing services. The entity is partnering with the most popular crypto wallets, businesses and lightning nodes to enable instant Bitcoin payments.
