Block’s Bitcoin revenue increased by 37.5% year-on-year, and the value of Bitcoin positions reached US$216 million

Block (formerly Square), a financial technology company founded by Jack Dorsey, reported third-quarter earnings that exceeded analysts’ expectations, and its significant growth in Bitcoin revenue sent its stock price sharply higher in after-hours trading. The company’s latest financial data shows that its Bitcoin business revenue increased by 37.5% compared with the same period last year, from $1.76 billion to $2.42 billion. The company's gross profit from its Bitcoin business also increased, rising to $44 million from $36 million last year. Block also highlighted the value of its Bitcoin holdings in its company's financial statements, which, based on market prices, amounted to $216 million. This market capitalization is $114 million higher than the book value. This difference between the book value and the market value stems from a feature of the accounting rules (which are about to change) that require companies to account for any decrease in the price of Bitcoin. An impairment loss is recorded, but the business is not allowed to recognize the appreciation in value of its Bitcoin holdings until the asset is sold. In the third quarter of 2023, the company determined no impairment losses on Bitcoin. Overall, Block's net revenue increased 24% year over year to $5.62 billion from $4.52 billion a year ago. Bitcoin revenue accounts for approximately 43% of total revenue. The growth in Bitcoin revenue was driven by the strong performance of the company's CashApp product. Cash App's revenue grew 34% year over year to $3.58 billion from $2.68 billion last year. Block shares were trading around $50 after the market closed Thursday, up 15%. (Fortune)