Jack Dorsey's block jumps by 42 % in positive crypto quarterly revenue

Jack Dorsey's block jumps by 42 % in positive crypto quarterly revenue

The shares of the Commercial Payment Company Block Inc (SQ), formerly Square, rose by more than 40 % on Thursday after a strong publication of winnings in the fourth quarter, some of which were supported by his crypto income.

The company announced that it generated a gross profit of $ 1.18 billion for the 4th quarter of 2021-an increase of 47 % compared to the previous year (YOY), according to the company Letter to the shareholders .

of this said that his crypto peer-to-peer payment service cash app generated a gross profit of around $ 518 million, an increase of 37 % of the year, while the Square ecosystem generated a gross profit of $ 657 million.

Square offers small and medium-sized companies Point-of-Sales payment register that are aimed at accepting credit card payments. Over the years, Block has made its way into a sector that is typically dominated by large banks and financial institutions.

The share price of Block on the Australian Securities Exchange (ASX) rose to a 22-day high of $ 115 ($ 118) per share of around $ 116 ($ 83) the previous day after the strong publication. At the height of the hiring zeal, he achieved an increase in the stock value by 42 %before it cooled down slightly.

The shares recently changed the owner for around $ 152.50 ($ 109.38). Block is mainly noded via the New York Stock Exchange - which was closed before the quarterly results were published - while the second number is on the ASX.

After the renaming Square in Block in December, the company announced in January that it bought the Australian Buy-now-Pay-Später company afterpay during its switch to the ASX. The profit from the fourth quarter did not contain any income from AfterPay.

The share prices had already started to decrease in August after this announcement, but began to seriously decrease from around $ 252 per share on November 4, 2021 to around $ 133 at the time of taking over the takeover.

"We believe that this takeover will drive the strategic priorities of Block for Square and Cash app by strengthening the connections between our ecosystems," said the company in his letter. "Peer-to-peer payments made it possible for us to expand the CASH app viral and remained the main drive for customer acquisition in the fourth quarter."

The company added that it had introduced a new function that enabled its customers to send fractions of stocks and Bitcoin from their cash app credit to friends and family in order to strengthen "network effects" via other products.

"By expanding the peer-to-peer skills, we see an opportunity to promote network effects across other products within our ecosystem and encourage customers to try new products within the cash app," said Block.

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The contribution Jack Dorsey’s Block Jumps 42% on Positive Crypto Quarterly Earnings is not a financial advice.