To Block! In the list of Web 2 entrepreneurs who fell into the Bitcoin rabbit hole, Jack Dorsey establishes himself as a major player. Indeed, the founder of the defunct social media Twitter is now devoted full time to development of this emblematic cryptocurrency. A strategy driven by the company Block, founded in 2021 in order to associate the initial Square with other projects like Cash App and Spiral. A structure involved in a BTC investment strategy whose current gain is estimated at $207 million for the financial year ending December 31, 2023.
Block Company Posts $207 Million in BTC Gains
Block is positioning itself at the forefront of Bitcoin adoption. And in order to support this dynamic, it held – as of December 31, 2023 – a portfolio of approximately 8038 BTC for investment purposes, for an estimated value of just over $410 million at its current price.
A visibly interesting operation, if we are to believe its latest fourth quarter results report published this week. A document during which a review of your BTC holdings Have been realised. And according to published data, the Block company would have invested “respectively $50 million and $170 million in Bitcoin in the fourth quarter of 2020 and the first quarter of 2021.”
An apparently profitable investment in the context of its latest financial report. Because, once all the accounting calculations have been made, the profits made show a positive amount of $207 million.
“In the fourth quarter of 2023, other net income included a revaluation gain on our Bitcoin investment of $207 million for the year ended December 31, 2023.”
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Cash App sees spectacular rise
At the same time, the Cash App application also recorded a positive result. In fact, it would have made it possible to generate “ $66 million profit gross in bitcoins in the fourth quarter of 2023. » Either a spectacular increase of 90% over the past year.
An increase, however, presented as mainly “due to an increase in the average market price of bitcoin as well as the benefit resulting from the appreciation in the price of our bitcoin inventory during the quarter. » But it is still a benefit.
“The total amount of Bitcoin sales to customers, which we count as Bitcoin revenue, was $2.52 billion, up 37% year-over-year. (…) For the full year 2023, Cash App generated $205 million in bitcoin gross profit and $9.50 billion in bitcoin revenue, up 31% and 34% respectively from a year to year. »
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The trend seems more than positive for the company Block. Its activity linked to Bitcoin is recording good performance to start the year 2024. And, with the correct alignment of planetsthe coming months could well cause its profits, already in good shape, to explode.