Block, the payments company led by Jack Dorsey, has generated $66 million in gross profit from the sale of Bitcoin through its Cash App, marking a significant 90% increase compared to the previous year. This noteworthy financial performance was unveiled in Block's fourth-quarter financial report released on February 22. The report revealed that total Bitcoin sales to customers in the fourth quarter, depicted as Bitcoin revenue, amounted to $2.5 billion, representing a 37% year-on-year increase.
For the full year, Block experienced similar growth trends, with Bitcoin revenue reaching $9.5 billion, marking a 34% year-over-year increase. Additionally, Bitcoin gross profit saw a substantial rise of 31%, amounting to $205 million. Block's CEO, Jack Dorsey, expressed the company's ambition for Cash App to emerge as a prominent provider of banking services for American households earning up to $150,000 annually.
Cash App, Block's mobile payment service, played a pivotal role in facilitating Bitcoin transactions, allowing users to seamlessly buy, sell, send, and receive BTC through linked cards or cash balances. In the fourth quarter, Cash App's total gross profit reached $1.18 billion, marking a significant 25% year-on-year increase. The surge in Bitcoin revenue and gross profit was attributed to the rising average market price of Bitcoin and appreciation in the price of Block's Bitcoin inventory during the quarter.
According to CoinGecko, Block holds approximately 8,027 BTC, with a current market value of approximately $413 million. During the fourth-quarter earnings call, Amrita Ahuja, Block's Chief Operating Officer and Chief Financial Officer, highlighted various factors contributing to the company's improved performance, including increased Bitcoin gross profits resulting from pricing adjustments implemented during the quarter. Following the release of the earnings report, Block shares surged by 5.4%, surpassing analysts' expectations.
Block reported a gross profit of $2.02 billion for the quarter, reflecting a notable 22% increase compared to the same quarter in 2022. Moreover, the company's full-year 2023 gross profit amounted to $7.5 billion, up by 25% from the previous year. Additionally, Block reported full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.79 billion, surpassing its guidance range of $1.66 billion to $1.68 billion.
