Block’s Q3 Bitcoin Gross Profit Shows Impressive Growth

Block, the fintech company led by Jack Dorsey with a primary focus on Bitcoin, has reported impressive financial results for the third quarter of 2023. These results exceeded analysts’ expectations and marked the start of a profitable period for the company.

The company achieved total revenue of $5.62 billion in Q3 2023, a remarkable achievement driven by significant growth in both Cash App and Square. This success resulted in a $44 million profit from the company’s Bitcoin holdings, which benefited from the recent price increase.

Dorsey outlined the company’s strategic priorities and plans in a shareholder letter issued on November 2, emphasizing its commitment to Square. He additionally focused on key financial metrics from the third quarter, such as the approval of a $1 billion share repurchase program to offset share-based compensation dilution.

Bullish Impact of BTC based on Q3 Performance of Block, Inc.

The performance of Block, Inc. in the third quarter indicates a bullish impact on BTC. The company’s bitcoin revenue increased due to an increase in the average market price of bitcoin and an increase in the volume of bitcoin sold through its mobile payment service, Cash App. This increase in bitcoin revenue boosted Block’s overall performance significantly.

Block, Inc. also revealed more information about its bitcoin holdings. After accounting for impairment charges, the company’s investment in bitcoin was valued at $102 million as of September 30, 2023. However, based on observable market prices, the fair market value was $216 million, exceeding the carrying value by $114 million. This demonstrates belief in BTC’s long-term potential and contributes to the overall bullish sentiment.

Cash App revenue increased by 26% year over year, in addition to bitcoin. The platform’s gross profit increased as well, as did the number of monthly transacting active users. These positive indicators strengthen BTC’s bullish impact. Furthermore, Block’s Buy Now, Pay Later (BNPL) platform generated significant revenue and gross profit during the third quarter, contributing to the company’s overall positive performance.

Overall, Block, Inc.’s strong third-quarter results, with bitcoin revenue accounting for 43% of total net revenue, add to the bullish sentiment surrounding BTC. These positive indicators may be viewed by investors as potential catalysts for further cryptocurrency price appreciation.

Q3 Financial Results

During Q3 2023, Block achieved a gross profit of $1.90 billion, reflecting a substantial 21% year-over-year increase. Notably, Cash App, the mobile payment service, contributed significantly to this success, generating a gross profit of $984 million, representing a 27% year-over-year increase. Square, another critical component of Block’s ecosystem, contributed $899 million in gross profit, representing a commendable 15% year-over-year growth.

Total net revenue for the third quarter of 2023 was $5.62 billion, representing a 24% year-over-year increase. Excluding Bitcoin revenue, total revenue was $3.19 billion, a 16% increase year over year. Transaction-based revenue and gross profit both increased by 9% to $1.66 billion and $674 million, respectively. Block processed $60.08 billion in Gross Payment Volume (GPV), a 10% increase year over year.

Subscription and service-based revenue also increased significantly, reaching $1.49 billion in revenue, a 25% increase year on year. Consequently, gross profit in this category increased by 28% year on year to $1.23 billion.

Block’s Bitcoin gross profit increased by 22% year on year to $44 million. This expansion was fueled by the sale of $2.42 billion in BTC to customers via Cash App. The company’s Bitcoin gross profit was 2% of its Bitcoin revenue.

Key Factors Driving Profit Growth in Q3

Continued Rise in Bitcoin Price: 

The overall increase in Bitcoin’s value throughout Q3 contributed significantly to Block’s revenue from Bitcoin transactions. As the price of Bitcoin rose, users were more inclined to buy, sell, and trade the cryptocurrency, generating higher transaction fees for Block.

Increased Bitcoin Adoption and Usage:

Block’s Cash App saw a 34% increase in Bitcoin transactions in Q3 2023 compared to Q2, indicating wider adoption of Bitcoin on Block’s platform. The total number of active Cash App users also increased by 17% in Q3 2023, further supporting this trend.

Strategic Partnerships and Integrations:

Block’s partnerships with Spiral and NYDIG expanded its Bitcoin offerings and reach, attracting new users and increasing transaction volume. These partnerships played a role in driving Bitcoin gross profit growth.

Effective Marketing and Promotional Campaigns:

Block’s targeted marketing campaigns and promotional efforts raised awareness about its Bitcoin offerings and attracted new users to its platform. These campaigns contributed to increased Bitcoin adoption and transaction fees.


Block’s third-quarter financial results were impressive, driven by significant growth in both Cash App and Square. The company’s Bitcoin gross profit increased by 22% year on year, fueled by the sale of $2.42 billion in BTC to customers via Cash App. This growth is a testament to Block’s focus on innovation and user experience, as well as its strategic partnerships and integrations. Looking ahead, Block is well-positioned to continue to capitalize on the growth of the cryptocurrency market. The company has a strong financial foundation, a talented team of executives, and a clear vision for the future. Communities are confident that Block will continue to be a leader in the fintech industry for many years to come.

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