• Jack Dorsey’s Block has announced a 47 percent increase in gross profit for the fourth quarter of 2021

  • Block (previously Square) reported $1.18 billion in gross profits for the fourth quarter, as well as a rise in the company’s bitcoin services.

    Block (previously known as Square), Jack Dorsey’s finance business, reported a gross profit of $1.18 billion for the fourth quarter of 2021, a 47 percent increase year over year. Furthermore, the company’s sellers have gradually incorporated more of Square’s ecosystem, according to the corporation.

    Outstanding Outcomes

    Block, Inc., an American financial services and digital payments corporation, announced $4.42 billion in sales for the previous fiscal year. In comparison, economists anticipated that this figure would be $4.01 billion. The results are up 62 percent year on year, with revenue from bitcoin purchases accounting for $1.96 billion of that total.

    Gross profits for the fourth quarter were also excellent, coming in at $1.18 billion, a 47 percent increase over the same period last year. Cash app gross profits totalled $518 million, while Square gross profits totaled $657 million.

    In keeping with the positive results, Block’s stock increased by more than 40% in just 24 hours. On Friday, SQ shares closed at around $120.

    This financial report was also the first since Jack Dorsey stepped down as CEO of Twitter and is now solely focused on Block’s mission.

    The firm bought the Australian financial company Afterpay earlier this year. “We believe that this transaction will advance Block’s strategic ambitions for Square and Cash App by enhancing the links between our ecosystems,” the company said.

    Crypto Initiatives by Block

    Dorsey outlined intentions for Block (then known as Square) to establish a bitcoin mining infrastructure in October 2021. The network would rely on “custom silicon” (advanced ASICs) and open-source development. Mining, according to the American, needs to be more energy-efficient, and as such, it is a difficult niche.

    His company’s endeavor seeks to develop industry technical integrations by “prototyping more efficient silicon, hashing algorithms, and power designs.”

    Shortly after, Square expanded its presence in the digital asset market by investing $75.5 million to acquire a 35% interest in the cryptocurrency exchange Korbit. Dorsey’s company therefore became the second-largest shareholder at the Korean trading arena, trailing Nexon’s holding company NXS, which owns 48 percent.

    The payments company changed its name to Block in December 2021, broadening its focus even farther into the blockchain ecosystem. According to the CEO, this is a “new name,” but “our mission of economic empowerment remains the same.”

    This occurrence coincided with Dorsey’s resignation as Twitter’s CEO. It’s worth remembering what he said last year:

    “If I wasn’t working at Square or Twitter, I’d be working on Bitcoin.” If it required more assistance than Square or Twitter, I would leave it to Bitcoin. But, in my opinion, both companies have a role to play.”

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