Block Shares Rise 8% After Earnings Beat Despite 26% Drop in Bitcoin Revenue

Block raised full-year guidance after stronger-than-expected first-quarter results, even as Bitcoin revenue fell 26% and a $173 million Bitcoin revaluation loss contributed to a $309 million net loss.

BTC

Summary

Block reported first-quarter results that beat estimates and prompted an 8% rise in its shares, while also raising full-year guidance. The quarter included a 26% decline in Bitcoin revenue and a $173 million Bitcoin revaluation loss that contributed to a $309 million net loss attributable to common stockholders. Block said it held 28,355 Bitcoin valued at about $2.2 billion at quarter end. Despite the accounting-related hit and weaker Bitcoin-related sales, total gross profit increased 27% year over year to $2.91 billion, including a 38% rise in Cash App gross profit to $1.91 billion.

Terms & Concepts
  • Bitcoin revaluation loss: An accounting loss recognized when the reported value of Bitcoin holdings is adjusted under applicable accounting rules.
  • Bitcoin revenue: Income generated from Bitcoin-related business activity, often tied to customer trading volume and market prices.
  • Earnings beat: A company reports financial results above analyst or market expectations.