By: Eliza Bennet
Block, the company previously known as Square and led by Jack Dorsey, reported a triumphant third quarter with significant growth in its Bitcoin-related business. As per the recently released earnings reports, the company saw a total net revenue of $5.62 billion for the Q3 period.
Profitable growth was propelled by robust performance from its Cash App and Square divisions. The company's Bitcoin revenue accounted for nearly 43% of its total revenue, reaching an impressive $2.42 billion. Besides, the firm didn't encounter any impairment losses on its Bitcoin holdings, suggesting a substantial contribution of Bitcoin to its profit margins.
As per the report, Cash App produced a gross profit of $984 million, indicating a 27% YoY increase, while Square generated a gross profit of $899 million, marking a 15% growth. Furthermore, Block recorded a gross profit of $1.90 billion, a 21% growth YoY, surpassing all expectations.
Despite economic challenges, Dorsey is committed to the 'long view', aiming to build a company that creates value over decades. As part of future plans, Block authorised the repurchase of $1 billion shares to offset some portion of the dilution resulting from share-based compensation.
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