Payment platform Block releases first-quarter financial report, Bitcoin investment has surfaced.
Twitter founder Jack Dorsey's payment platform Block, formerly known as Square, released its first-quarter financial report for 2023, with a gross profit of $1.71 billion, a 32% increase from the same period last year. The net income was -$17 million, but the final adjusted EBITDA was $368 million. After the financial report was announced, Block's stock code SQ rose by 2.35% after hours, currently trading at $61.85.
In late March, Block was targeted by the well-known short seller Hindenburg Research, accusing Block's business of being not innovative but fraudulent. Subsequently, the stock price hovered at a low level. Although Cathie Wood, known as the "Ark Invest Queen," came forward to defend Block and expressed support by increasing her stake in the stock, the stock price has yet to show improvement.
Why was Block accused of fraud? See: Block targeted by Hindenburg short attack, Block's magic not innovative but fraudulent
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Cathie Wood defends Block: Cathie Wood defends Block, Ark continues to increase stake in Block stock
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Block Financial Report Continues to Grow
In the first quarter of 2023, the gross profit was $1.71 billion, a 32% increase from the same period last year. Square's gross profit was $770 million, a 16% increase from the previous year, and Cash App's gross profit was $931 million, a 49% increase from the same period last year. The net income for the first quarter was -$17 million, but the adjusted EBITDA was $368 million, a 16% increase from the same period last year. The main adjustment in this quarter was the stock-based compensation expense, amounting to $280 million.
Note: EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, which better represents the company's core performance.
Bitcoin Investments Come to Light
According to Buy Bitcoin worldwide's statistics, Block holds 8,027 bitcoins, ranking eighth among all companies.
The report states that as of March 31, 2023, Block has accumulated $220 million in bitcoin investments, with an average unit cost of approximately $27,400. The current fair value is $229 million, showing a profitable situation.