Twitter founder Jack Dorsey’s bitcoin-focused fintech venture Block Inc (NYSE:SQ) (formerly Square), which runs the popular Cash App, clocked over $21.9 billion in net revenues in 2023, marking a 25% increase from 2022.
Bitcoin-based revenues accounted for the lion’s share, with $9.5 billion accrued from purchases and sales of the benchmark cryptocurrency.
However, extremely tight spreads mean gross bitcoin profits were less than 3%.
Block applies a small margin when facilitating bitcoin purchases and sales between customers and broker-dealers.
As of 31 December, Block had 24,570 bitcoins held in custody on behalf of customers.
On the balance sheet, Block held approximately 8,038 BTC at a fair value of $339.9 million.
Non-bitcoin transaction-based revenues came to $6.3 billion for the year on a much better 41% margin, while subscriptions and services-based revenues contributed around $5.9 billion.
Net losses came to $21 million, a substantial improvement from over half a billion worth of losses penned in 2022.
An adjustment on foreign currency translations meant Block’s total comprehensive income for the year came to $124 million.
The market cheered these results as well as Block’s first-quarter outlook, which has gross profit coming in above $2 billion with a 12% adjusted operating income margin.
Block’s shares rallied 13% to $76.67 in Friday’s premarket trades.