See More

Block’s Bitcoin Strategy Yields $207M Profit: How Institutions Are Accumulating BTC

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • Block's Bitcoin strategy yields $207 million profit, with holdings now worth over $400 million.
  • The company's stock (SQ) price rises 5.3% after reporting a 37% increase in Bitcoin sales via Cash App.
  • MicroStrategy and El Salvador also see significant gains from their respective Bitcoin investments.
  • promo

Block, under Jack Dorsey’s leadership, reported a $207 million profit from Bitcoin. This was after strategic investments totaling $220 million in 2020 and 2021.

By year-end 2023, Block’s Bitcoin holdings were 8,038 BTC. Their value has now grown to exceed $400 million, highlighting the growing institutional trust in Bitcoin as a valuable asset.

Block’s Share Surges After Reporting Bitcoin Profits

Block’s latest earnings reveal $2.52 billion in Bitcoin sales through Cash App, marking a 37% year-over-year increase. Consequently, Block’s stock price surged 5.3% on Thursday, reflecting investor confidence in the company’s crypto ventures.

“The year-over-year increase in Bitcoin revenue and gross profit was driven by an increase in the average market price of Bitcoin as well as a benefit from the price appreciation of our Bitcoin inventory during the quarter,” the report states.

Block’s Cash App has been pivotal in Bitcoin transactions The increase from the previous year highlights Cash App’s role in making crypto investments accessible. Dorsey aims to make Cash App a trusted banking alternative, emphasizing its user-friendly features.

Read more: Cash App Review 2023: Everything You Need To Know

The crypto market’s resurgence in the fourth quarter of 2023 is also noteworthy, with Coinbase exceeding Wall Street expectations. Coinbase’s revenue soared by 45.2%, driven by increased transactional activity.

This aligns with the broader institutional and consumer Bitcoin accumulation trend, reshaping investment strategies.

Companies and Countries Accumulating Bitcoin

For instance, MicroStrategy has notably impacted the Bitcoin investment arena. The company’s bold Bitcoin accumulation strategy has led to an unrealized profit of $3.7 billion.

According to Saylor Tracker, MicroStrategy holds 190,000 BTC, valued at $9.74 billion. The average cost per Bitcoin was $31,464. This reflects MicroStrategy’s belief in the long-term value of digital currency.

MicroStrategy Bitcoin Portfolio
MicroStrategy Bitcoin Portfolio. Source: Saylor Tracker

Similarly, El Salvador is also famous for its Bitcoin accumulation strategy, becoming the first country to adopt BTC as a legal tender in 2021. The country’s Bitcoin holdings are 2,843 BTC, worth $145.4 million. The average purchase cost was $42,482 per Bitcoin.

Read more: Who Owns the Most Bitcoin in 2024?

This investment has brought El Salvador an unrealized profit of $24.6 million, showcasing the potential of Bitcoin in national financial strategies.

Top crypto projects in the US | April 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2264-1.png
Harsh Notariya
Harsh Notariya excels in delivering SEO-optimized crypto news under tight deadlines. Previously, as a Growth Marketer at Sporty and a Community Consultant at Totality Corp, he significantly boosted community engagement and followers. Harsh also crafted engaging content for top crypto influencer Shivam Chhuneja, blending meme references for an educational yet fun experience. His versatile skills make him a notable figure in crypto journalism.
READ FULL BIO
Sponsored
Sponsored