Block Profit Surges Fourfold on Cash App, Bitcoin

The company, run by Jack Dorsey, said Bitcoin generated nearly 46% of its revenue.

Block’s profit surged nearly four-fold in the first quarter to $472 million, driven by transactions in its Cash App money-transfer service and revenue from selling Bitcoin. Revenue for the first three months of the year rose 19% to $5.9 billion. It raised its full-year outlook for gross profit, which measures revenue after Bitcoin mining and other costs, to $8.78 billion from $8.65 billion.

The San Francisco-based company makes money from its Cash App by charging fees between 0.75% and 3% on the transactions as well as mining Bitcoin. Block generated $2.7 billion revenue from selling Bitcoin, representing nearly 46% of the company’s total revenue. The company has also introduced its own chips for crypto mining and a new mining rig system that it expects will help reduce the cost of generating new Bitcoin. The company said will dedicate 10% of its monthly gross profits from Bitcoin services to buy more Bitcoin assets. Revenue from its Square businesses, which provides point-of-sale devices and software, rose 11% to $1.7 billion.

“We believe the world needs an open protocol for money, one that’s not owned or controlled by any single entity,” CEO Jack Dorsey wrote in a letter to shareholders. Block shares rose 10% in after hours trading.