to leave a comment.

▲ Bitcoin, Gold ©CoinReaders
Jack Dorsey's Block Inc.'s stock surged nearly 8% in after-hours trading after it announced earnings that exceeded market expectations, despite the impact of a sharp drop in Bitcoin prices.
According to investment media FXStreet on May 8 (local time), Block's earnings per share (EPS) for the first quarter of this year recorded $0.85, significantly exceeding the market's expectation of $0.68. Immediately after the earnings announcement, investor buying surged, pushing Block's stock price up 7.9% to $75.70 in after-hours trading.
The market evaluated these results as an 'earnings surprise.' However, Block also recorded a quarterly net loss for the first time since 2023. The net loss for the first quarter was $309 million, which included a revaluation loss of $172.8 million on 8,883 BTC (Bitcoin) held. During the same period, Bitcoin's price dropped by approximately 23.8%.
Bitcoin-related revenue also decreased. Bitcoin revenue generated from Cash App and other Block products fell from $2.33 billion in the same period last year to $1.8 billion this year. Block explained that changes in the Bitcoin trading environment, along with a strategy to reduce some transaction fees on Cash App, had an impact.
Conversely, profitability indicators improved. Block's gross profit for the first quarter was $2.9 billion, an increase of 27% year-over-year. Bitcoin payments within Cash App contributed $63 million to gross profit, and Square did not significantly impact the Bitcoin business, the company stated. It also added that over 800,000 merchants in the US are set up to accept Bitcoin for everyday payments.
Block has recently been accelerating the expansion of its Bitcoin business. In April, it introduced Proof-of-Reserves to enhance customer asset transparency and unveiled 'Bitkey,' a touchscreen-based hardware wallet. Cash App added a feature that allows some users to automatically convert payment amounts to Bitcoin, and Square merchants began offering a 5% Bitcoin cashback reward. Meanwhile, the company is also undergoing a workforce reduction of approximately 4,000 employees to improve operational efficiency.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.