Rose

Bitcoin

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div> 
<p class="has-drop-cap">Block, a payments and technology firm founded by Twitter co-founder Jack Dorsey, published its financial report for <a aria-label="Q1 2023 (opens in a new tab)" href="https://s29.q4cdn.com/628966176/files/doc_financials/2023/q1/Shareholder-Letter_Block_1Q23.pdf" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">Q1 2023</a> that showed notable revenue and Cash App growth. The company’s shares rose 4.2% ahead of the market open on Friday.</p> 
<h3 id="block-s-revenue-rose-26-annually">Block’s Revenue Rose 26% Annually</h3> 
<p>Shares of Block are up 4.2% in premarket trading Friday after the fintech firm reported better-than-expected earnings and revenue for Q1 2023 as its Cash App continued to see strong growth. The stock stood at 60.43$ at the time of the writing.</p> 
<p>Block’s total net revenue came in at $4.99 billion in the quarter that ended Mar. 31, up 26% year-over-year. This compares to consensus estimates of $4.59 billion, according to Refinitiv.</p> 
<p>Block reported a Bitcoin gross profit of $50 million in Q1, while the total sale amount of bitcoin sold to customers – which the company recognizes as bitcoin revenue in the report – stood at $2.16 billion. Bitcoin gross profit was 2% of bitcoin revenue, the report added.</p> 
<p>Total gross profit in the quarter rose 32% from a year ago to $1.71 billion. Gross profit from Cash App jumped 49% year-over-year to $931 million, while Square generated a gross profit of $770 million, 16% higher than in the same quarter last year.</p> 
<p>Block said it did not recognize a bitcoin impairment loss in Q1 2023. This marks a notable improvement in Block’s bitcoin operations from the previous quarter when the <a href="https://tokenist.com/block-reports-47m-impairment-loss-on-bitcoin-investment-for-2022/" rel="dofollow" class="deco-link">company posted</a> a bitcoin impairment loss of $47 million.</p> 
<div class="cta-referral"> 
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
 <div class="cta-referral__text"> 
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noreferrer noopener nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p> 
 </div> 
</div> 
<h3 id="cash-app-seeing-growth-despite-hindenburg-s-allegations">Cash App Seeing Growth Despite Hindenburg’s Allegations</h3> 
<p>Block’s strong Q1 results, particularly its Cash App growth, will likely be closely followed by investors after US short-seller <a href="https://tokenist.com/hindenburg-research-accuses-jack-dorseys-block-of-fraud/" rel="dofollow" class="deco-link">Hindenburg Research disclosed</a> its short position in Jack Dorsey’s payments firm.</p> 
<p>In March, Hindenburg disclosed it had shorted Block and accused the company of committing “frictionless” fraud, inflating Cash App user numbers, and ignoring anti-money laundering regulations, among numerous other allegations. <a aria-label="Hindenburg’s report (opens in a new tab)" href="https://hindenburgresearch.com/block/" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">Hindenburg’s report</a> came just months after the <a aria-label="company described (opens in a new tab)" href="https://hindenburgresearch.com/adani/" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">company described</a> India’s Adani Group as “the largest con in corporate history.”</p> 
<p>But Jack Dorsey’s company quickly denied<a href="https://tokenist.com/block-responds-to-hindenburgs-allegations-will-explore-legal-action/" rel="dofollow" class="deco-link"> Hindenburg’s allegations</a>, saying it would take legal action against the short seller after its “inaccurate and misleading” claims. There have been no significant developments in the Block-Hindenburg story since then.</p> 
<div class="cta-sub js__cta-sub"> 
 <div class="cta-sub__start" data-step="1"> 
  <div class="cta-sub__title">
   <strong>Finance is changing.</strong>
  </div> 
  <div class="cta-sub__subtitle">
   Learn how, with Five Minute Finance.
  </div> 
  <div class="cta-sub__excerpt">
   A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.
  </div> <button type="button" class="btn">Try it out (for free)</button> 
 </div> 
 <div class="cta-sub__form" data-step="2" style="display: none;"> 
  <script type="text/javascript" src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&amp;webforms_id=zw3Wv"></script> 
 </div> 
 <div class="cta-sub__result" data-step="3" style="display: none;"> 
  <div class="cta-sub__title">
   Awesome
  </div> 
  <div class="cta-sub__caption">
   You’ve subscribed.
  </div> 
  <div class="cta-sub__greeting">
   You’re well on your way to being in the know.
  </div> 
 </div> 
</div> 
<p><em><strong>Cash App continued to grow in the latest quarter despite Hindenburg’s serious allegations against the payments app. What do you think this suggests? Let us know in the comments below.</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/block-shares-up-4-in-premarket-as-company-reports-solid-q1-results/">Block Shares Up 4% in Premarket as Company Reports Solid Q1 Results</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Block Shares Up 4% in Premarket as Company Reports Solid Q1 Results

Table of Contents

Tokenist

Other articles published on May 5, 2023

MYRIA Token Utility: What are Protocol Fees

Memecoin craze causes Bitcoin transaction fees to skyrocket

What are smart contract wallets?

Bitcoin Price May Hit $100K by Year End, Standard Chartered Bank Says, DigiToads (TOADS) Could 10...

Twitter Crypto Analyst Makes Millions with Meme Coins – What’s Next for Pepe?

U.S. banking turmoil sparks gold frenzy in central banks

Join our free newsletter for daily crypto updates!