Block's gross profit on the payment platform continues to grow, with increased Bitcoin revenue, and its proprietary positions have already earned 5,000 ETH.

Twitter founder Jack Dorsey's payment platform Block, formerly known as Square, has released its third-quarter financial report for 2023. Both Cash App and Square saw strong revenue growth, with overall gross profit rising to $1.9 billion, a 21% increase from the same period last year. Encouraged by the financial results, Block's stock price finally broke free from its long-standing slump, surging 16% to $51 after hours.

Increased Profits from Bitcoin

In the third quarter, Bitcoin revenue reached $2.4 billion, a 37% increase from the same period last year. Bitcoin revenue refers to the total income from selling Bitcoin to customers, thus fluctuating based on customer demand and changes in the Bitcoin market price.

After deducting its costs, profits amounted to $44.68 million, compared to $36.7 million in the same period last year, with a gross margin of approximately 1.9%, and relatively high transaction fees.

The amount of Bitcoin held for customers is approximately 25,083, remaining relatively stable.

Profits from Held Bitcoin

According to Buy Bitcoin Worldwide's statistics, Block holds 8,027 Bitcoins, ranking seventh among all listed companies.

In its financial report, as of September 30, 2023, Block has invested $220 million in Bitcoin, with an average cost of approximately $27,400. Based on the Bitcoin price of $34,700 at the time of writing, unrealized profits have reached $58.6 million.

Block Does Not Adopt New Fair Value Bitcoin Pricing

Block states that Bitcoin investments are accounted for as indefinite intangible assets, excluding any Bitcoin held for others. The current fair value is $2.165 billion. As of September 30, 2023, cumulative impairment expenses amount to $1.18 million.

Recently, the Financial Accounting Standards Board (FASB) in the United States approved the use of Fair Value for companies holding cryptocurrency assets to show the value of these assets in financial statements. Block also noted in its financial report that they have not adopted this approach yet, and they anticipate that the adoption of this guidance will not have a significant impact on the company's financial statements and related disclosures.

Block Surges 16% After-Hours

Boosted by the financial report, Block's stock price finally broke free from the long-standing slump, surging 16% to $51 after hours.

Block also announced that the board has authorized the repurchase of up to $1 billion of the company's Class A common stock. The goal of this plan is to offset the dilution associated with stock compensation given to employees as part of the overall company compensation plan. It is expected that the repurchase will also help drive up the stock price.