Block's Bitcoin Strategy Yields $207 Million in Profits: How Institutions Are Accumulating BTC
Block, under the leadership of Jack Dorsey, reported a profit of $207 million in Bitcoin. This was after strategic investments totaling $220 million in 2020 and 2021.
As of the end of 2023, Block's Bitcoin holdings stood at 8,038 BTC. Its value has now risen to over $400 million, highlighting the growing institutional confidence in Bitcoin as a valuable asset.
Block Shares Rise After Reporting BTC Profits
Block's latest results reveal $2.52 billion in Bitcoin sales through Cash App, marking a 37% year-over-year increase.
Consequently, Block's share price rose 5.3% on Thursday, reflecting investor confidence in the company's cryptocurrency strategy. The report highlights:
“The year-over-year increase in Bitcoin revenue and gross profit was driven by an increase in the average market price of Bitcoin, as well as a benefit from the price appreciation of our Bitcoin inventory during the quarter.”
Block’s Cash App Has Been Key in Bitcoin Transactions The year-over-year increase highlights the service’s role in making crypto investments accessible.
Dorsey aims to turn Cash App into a trusted banking alternative, emphasizing its user-friendly features.
Read more: How to Buy Bitcoin (BTC)? Everything You Need to Consider
The resurgence of the cryptocurrency market in Q4 2023 is also noteworthy, with Coinbase outperforming Wall Street expectations. Coinbase revenue soared 45.2%, driven by increased transactional activity.
This aligns with the broader trend of institutional and consumer BTC accumulation, reshaping investment strategies.
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