Twitter co-founder Jack Dorsey’s payments company Block is riding high on Bitcoin with strong fourth-quarter profits. The company’s shares rose more than 40% on Thursday. Block recorded a gross profit of $1.18 billion for Q4, 2022 – which is a 47% year-on-year increase.
Moreover, its crypto peer-to-peer payment service Cash App recorded a gross profit of around $518 million. This was up 37% year-on-year and Square’s ecosystem saw a gross profit of $657 million. The company also recorded gains through second listing in Australia with the acquisition of Afterpay – Australia’s top payments company. As such, Block’s Australian stock jumped as much as 40%. This comes after shares fell by two-thirds when the deal closed in January. It pushed down the value of the stock. The company’s share price on the Australian Securities Exchange (ASX) jumped to a 22-day high to $118 per share from $83, a day ago. This is attributed to strong posting.
In an official statement, Block said the acquisition of Afterpay will further the company’s strategic priorities for Square and Cas App. It will strengthen the connections between their ecosystems. Block highlighted that peer-to-peer payments have allowed the company to grow Cash App’s network.
Analysts highlighted that fourth-quarter pre-tax profit surpassed forecasts of RBC Capital Markets and Jefferies. Block highlighted that total revenue hit $4.08 billion in the quarter from $3.16 billion a year ago. Gross profit spiked 47% to $1.18 billion. Square up by 54% recorded gross profit of $657 million and Cash App saw profits grow by 37% to $518 million. The P2P payment service was up 12% from the previous year, generated bitcoin revenue of $1.96 billion in the quarter. The profits were recorded despite bitcoin’s high volatility and price crashes.