#Bitcoin #JackDorsey #CashApp #CryptocurrencyInvestment #BlockchainTechnology #BitcoinMining #CryptocurrencyNews #DigitalBanking
Block, under the leadership of CEO Jack Dorsey, has reported significant growth in its Bitcoin-related financial metrics for the fourth quarter of the last year. Through its mobile payment service, Cash App, the company realized a $66 million gross profit from Bitcoin sales, marking a 90% increase compared to the same period in the prior year. This remarkable growth was highlighted in Block’s earnings report, which also showed that the company’s total Bitcoin revenue for the quarter reached $2.5 billion, a 37% year-over-year increase. For the full year, Bitcoin revenue climbed to $9.5 billion, 34% higher than the previous year, with gross profit from Bitcoin jumping 31% to $205 million.
The significant uptick in Bitcoin revenue and profit for Block is attributed to several factors. These include the rise in the average market price of Bitcoin during the quarter and the appreciation of Block’s Bitcoin inventory. Block’s strategic investments in Bitcoin, adding up to $220 million in 2020 and early 2021, have paid off, with its holdings now valued at approximately $413 million. Cash App has been vital in facilitating these transactions, offering users a simplified platform for buying, selling, and managing Bitcoin. Dorsey’s ambition for Cash App is to transform it into a leading provider of banking services for households in the U.S. earning up to $150,000 annually. These efforts are part of a broader commitment by Jack Dorsey and Block to embrace and promote the use of Bitcoin and blockchain technology, from creating a decentralized Bitcoin exchange to investing in sustainable Bitcoin mining solutions.
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