Block’s third-quarter Bitcoin revenue surpasses $2 billion

Bullock Corporation Jack Dorsey released a letter to shareholders disclosing the company’s third-quarter earnings. The letter revealed that Block has strengthened its investment plan and its profits increased in the third quarter.

Block raised its forecast for full-year 2023 adjusted operating income and adjusted EBITDA.

Block also said Cash App Pay transactions have increased in recent months. As of September, the service had more than 2 million monthly active users, a number that has doubled since June.

The report shows that Bitcoin revenue increased significantly in the third quarter, reaching $2.42 billion, a year-on-year increase of 37%.

Likewise, the gross profit is Bitcoin Increased to US$45 million, an increase of 22% compared with the same period last year. The company is initiating its first authorization to repurchase $1 billion in stock to offset some of the dilutive effects of stock-based compensation.

Block’s third quarter shareholder letter stated:

“We believe that by 2026, we will achieve the Rule of 40, with initial gross profit growth of at least around 10% and adjusted operating margin of 20%.”

Block releases third-quarter earnings following third-quarter financial disclosure Coin Library, indicating that the company also thrives on net profits. Microstrategy also reported its third-quarter earnings and disclosed additional Bitcoin purchases in October.

Bullock’s letter to shareholders also mentioned employee limits, as the company will not employ more than 12,000 people.

Bullock won’t hire any more employees unless it believes the business is “significantly outpacing the company’s growth rate.”

Block counts Bitcoin (BTC) as an asset on its balance sheet and disclosed investments in Bitcoin of $50 million in the fourth quarter of 2020 and $170 million in the first quarter of 2021.

Because Bitcoin is classified as an intangible asset with an indefinite life, it is susceptible to losses when its market value falls below its book value during the valuation period.

However, in Q3 2023, Block reported no downside losses on its Bitcoin holdings.

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